President Joe Biden will sign an executive order on Tuesday requiring federal contract workers to make at least $15 an hour.

As his efforts to increase the national minimum wage to $15 an hour stalled in Congress, the executive order could impact hundreds of thousands of people who are working on federal contracts — giving a raise to low-wage workers including food service workers on military bases and maintenance workers in government buildings.

The Economic Policy Institute estimates up to 390,000 low-wage contractors will see a raise as a result of the executive order. EPI estimates the average annual pay increase for year-round workers will be up to $3,100, largely benefiting women and Black or Hispanic workers.

All agencies must implement the wage hike in new contracts by March 30, 2022. The executive order also requires agencies to implement the higher wage into existing contracts when they are extended.

Biden signed an executive order to start the process of raising the minimum wage for contractors in January.

Tuesday's order — to be signed ahead of Biden's 100th day in office — builds on an executive order signed by President Barack Obama in 2014, requiring federal contract workers to make at least $10.10 per hour. The minimum wage was indexed to inflation and is now at $10.95 an hour. After 2022, the minimum wage for federal contract workers will continue to be indexed to an inflation measure so it will be automatically adjusted.

Biden's executive order would also phase out the tipped minimum wage for federal contract workers by 2024. Currently, the tipped minimum wage is $7.65.

The White House argues the move will make workers more efficient and productive, while reducing turnover.

"This important action will make a significant difference in the lives of thousands of Americans, many frontline and essential workers, as it takes a strong step closer to ensuring that every worker’s dignity and contributions are honored with a decent paycheck," said House Speaker Nancy Pelosi (D., Calif.) in a statement.

Pelosi said Democrats in Congress will keep trying to raise the federal minimum wage to $15 an hour for all workers.

Jessica Smith is chief political correspondent for Yahoo Finance, based in Washington, D.C. Follow her on Twitter at @JessicaASmith8.

Read more:

• Lawmakers push for $100B+ investment in science and tech to compete with China

• Rep. Blumenauer 'confident' Biden will 'stay out of the way' on marijuana legalization

• Senate Democrats unveil plan to overhaul unemployment insurance system

• Michigan Congressman: Biden jobs plan will help US compete with China in EV race

• Here's what's in President Biden's $2 trillion infrastructure plan