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MLB Minimum Salary To Increase To $414,500 In 2011

The major league minimum salary will rise in 2011 to $414,500 This represents a 3.6% cost of living increase from the last two seasons, when the MLB minimum was $400,000. The minimum salary has risen through the years, from $300,000 in 2003 to the current level:

MLB Minimum Salary
Year MLB Minimum
2003 $300,000
2004 $300,000
2005 $316,000
2006 $327,500
2007 $380,000
2008 $390,000
2009 $400,000
2010 $400,000
2011 $414,500
Source: MLB CBA 2003 & 2006

The 2011 cost of living adjustment is due to the current MLB collective bargaining agreement, signed in 2006. From Article VI, Paragraph B(1):

The minimum rate of payment to a Player for each day of service on a Major League Club shall be as follows: the 2010 rate per season plus a cost of living adjustment, rounded to the nearest $500, provided that the cost of living adjustment shall not reduce the minimum salary below $400,000.

Article VI, Paragraph B(4) describes how the 2011 minimum salary is determined:

Cost of living adjustments for the Major League minimum salary described above in paragraph (1) shall be computed as follows:

To determine the 2011 salary rate, $400,000 shall be multiplied by a fraction, the numerator of which is the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics (CPIW) for November 2010 and the denominator of which is the CPIW for November 2008.

The CPI-W for November 2010 was released this morning by the Bureau of Labor Statistics:

(This is based on a scale in which 1982-84 is equal to 100)

November 2008: 207.296

November 2010: 214.750

That would make the 2011 minimum salary $400,000 x 214.750 / 207.296 = $414,383, or rounded to the nearest $500, $414,500.


In other news, Russell Martin passed his physical, completing his deal with the Yankees. Buster Olney of ESPN reported that Martin's deal with New York has a $4 million base salary, which is less guaranteed money than the $4.2 million offered by the Dodgers.