The pay increase corresponds with the regional Consumer Price Index for cost of living.
All employers in Santa Fe must pay its workers the new living wage.
The current living wage is $9.85 per hour and was supposed to increase by 1.4 percent in 2011.
However, Mayor David Coss said it appeared city staff neglected to adjust the wage.
The fix the problem, officials decided to combine the 2011 and 2012 adjustment.