A MINIMUM wage increase for California’s healthcare workers  is to be delayed, it was announced on Saturday.

More than 426,000 healthcare workers in the US state were due to receive the first instalment on July 1 in a plan that would raise their pay to $25 per hour (£19.65) over the next decade.

But the ruling Democrats have agreed to delay the pay hike to help balance the state's budget. The agreement between Governor Gavin Newsom and legislative leaders, in consultation with unions, is part of a larger plan to close an estimated $46.8 billion (£37bn) shortfall.

This is the second year in a row that the US’s most populous state has had a multibillion-dollar deficit.

Now, if approved by the legislature next week, the workers could get that raise on October 15. But the new plan will only come about if California’s revenues between July and September are at least 3 per cent higher than what officials have estimated.

If that doesn’t happen, the raise won’t start until January 1 at the latest.

The delay preserves a hard-fought victory for one of the state’s largest trade unions and one of the Democratic Party’s largest campaign donors. 

Dave Regan, president of Service Employees International Union – United Healthcare Workers West, said workers are disappointed they won’t see raises this summer.

“But we also recognise and appreciate that legislative leaders and the governor listened to us as we mobilised and spoke out this year to insist that, despite a historic budget deficit, California’s patient care and healthcare workforce crisis must be addressed,” he said.

Mr Regan added that the union was confident that the initial raise for workers who have not yet received it will happen in the autumn.

The minimum wage for most people in California is $16 per hour (£12.50), which is among the highest in the US. 

The Newsom administration had previously said the minimum wage increase would cost the state about $2bn (£1.5bn). But if delayed until January, it will cost the general fund about $600 million (£472m).

The figure would rise annually to reflect scheduled increases until it reaches $25 per hour for most healthcare workers.

“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Governor Newsom said.

The governor and politicians also agreed to abandon some previously proposed cuts, including one that would have stopped paying for people to care for some low-income disabled immigrants who are on Medicaid.