Millions of Americans will get a pay raise New Year's Day, an increase in social security benefits

Millions of Americans will get expanded Social Security benefits because of federal legislation while others will get a pay raise on New Year's Day due to state legislation. 

Twenty-one states in the U.S. are expected to increase the minimum wage pay on Jan. 1. This is due to inflation adjustment, according to reports. The Economic Policy Institute reports that the state laws that are responsible for the index of minimum wage to inflation are trailing 13% of the January increases.

The federal minimum wage is $7.25. It remains that way in 20 states. Other states have increased it as inflation has not been able to keep up with everyday prices.  "The truth is the number of workers that earn $7.25 per hour is quite low, but that still means with inaction we are leaving tens of millions of workers out to dry," state economic analyst at the EPI, Sebastian Martinez Hickey, told CBS News in an interview.

As of now only a third of workers live in a state that has a minimum wage of at least $15 and even that is expected to increase. 

CBS News reports that California's minimum wage is increasing to $16.50 from $16, Delaware's minimum wage is increasing to $15 from $14.25 and Arizona will have a minimum wage of $14.70 from $14.35.

Boost in Social Security benefits

While nine million people will benefit from wage increases, about three million could potentially get a boost in social security benefits. President Joe Biden is expected to sign the Social Security Fairness Act on Jan. 6, a bill that President-elect Donald Trump has also endorsed, according to reports.

The legislation would end provisions that limiting federal benefits for those that are ready to get their pensions. It would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) provisions of Social Security and the Government Pension Offset, according to the Associated Press.

Those who got their pension working for the federal, state or local government wouldn't have their Social Security taxes withheld. The benefits reduced would be reduced through provisions.

The Senate passed the bill on Dec. 20 and the House passed it on Nov. 12 in a 327-75 vote.

The Social Security Administration said in a statement that regional offices would be available for assistance if Biden signs the bill into law. 

"If you are already entitled, you do not need to take any action at this time except to verify that we have your current mailing address and direct deposit information," the agency said. "If you are receiving a public pension and are now interested in filing for benefits, you may file online at ssa.gov or schedule an appointment.”