Gov. Janet Mills announced Wednesday that she is increasing Medicaid payments through MaineCare for nursing and residential-care facilities statewide to boost pay for facility workers well above the state’s minimum wage.

The increases, according to a statement, will begin on Jan. 1, 2022 and impact 225 facilities across Maine. The increases are part of the biennial budget signed into law earlier this year, and are designed to raise pay for direct-care workers at the facilities to at least 125% of the state’s minimum wage.

“Our direct-care workers deserve pay that matches the important work they do for Maine people. It is my hope that increasing these rates will allow facilities to increase staff wages in the new year and help them recruit and retain committed and compassionate workers,” Mills said.

Mills is also proposing to earmark $7.6 million in her supplemental budget for what she called a “supplemental wage adjustment” to complement the new increases.