CANFIELD, Ohio (WKBN) — Inflation is still high across the country and the state of Ohio is trying to help that with an increase in minimum wage in 2022.

However, there’s a lot to understand when it comes to raising wages.

The wage will increase to $4.65 for tipped employees and to $9.30 for non-tipped employees.

“We call it a living wage now. Basically, with the costs that are going up across the United States, it’s been time to start raising those wages,” said Chris Mediate with Mediate Financial.

This is not a huge increase — other states’ minimum wages are around $15 an hour.

Although the new minimum wage is going to pay employees more it could have an effect on small businesses.

“We have different degrees of employees. When we start to raise wages on that level it pushes our entire wage salaries all the way up to make it equal,” Mediate said.

Research shows minimum wage isn’t near where it should be. According to the Center for Economic and Policy Research, minimum wage should be around $26 an hour. That’s if wages kept up with producer growth, a national scale of how much consumer costs rise.

“Competition has started to increase. We’re starting to not have just follow minimum wages to keep talent, they’re going to have to start increasing wages,” Mediate said.

The federal minimum wage will remain at $7.25 an hour.