PORTLAND, Ore. (AP) — Oregon's minimum wage is going up to $8.95 an hour.

State Labor Commissioner Brad Avakian announced the 15-cent increase Monday. The raise takes effect Jan. 1.

State law approved by voters in 2002 directs the commissioner to adjust the minimum wage for inflation every September.

This year's wage tracks a 1.7 percent increase in the Consumer Price Index since August 2011.

Oregon's minimum wage will now be 23 percent higher than the federal minimum wage of $7.25 per hour.