(CNN) Drivers for Uber, Lyft and other ridehailing companies will soon get a minimum wage in New York City.

On Tuesday, the city's Taxi and Limousine Commission voted on a minimum pay formula to protect ridehailing drivers from being underpaid by companies. Under the new policy, drivers will earn a minimum take-home wage of $17.22 per hour. That's the ridehailing equivalent of a $15 minimum wage, accounting for the fact that those drivers have to pay payroll taxes and do not receive paid time off, the TLC said.

The move, which will go into effect in 30 days, is expected to raise the average driver's pay by $9,600 per year, according to the proposal.

The minimum pay floor is a first for the US ridehail industry and could mean rides in New York will get pricier.

The formula takes into consideration time spent working beyond driving passengers, such as waiting for a dispatch or traveling to pick up a rider. It also provides some protection for ridehailing drivers, who are classified as contractors ineligible for many benefits and rights that protect employees.

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