Nearly half of U.S. states are set to increase their minimum wage starting in 2025, benefiting millions of workers from California to Maine.
A total of 21 states will raise their minimum wage on January 1, either through inflation-based adjustments or scheduled increases. This will impact approximately 9.2 million workers, who are expected to receive a combined $5.7 billion in wage increases throughout the year, according to the Economic Policy Institute (EPI).
Following these hikes, Washington will have the highest minimum wage at $16.66 per hour, while California and New York will follow closely with a $16.50 per hour wage floor. Other areas, including Washington, D.C., and 10 states such as Delaware, Illinois, and Rhode Island, will also see their minimum wage reach or exceed $15 per hour. Together, these regions represent about one-third of the U.S. workforce.
The states raising their minimum wage on January 1 include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
In addition to state-level increases, nearly 50 cities and localities will also raise their minimum wages. In California, 29 cities will implement pay hikes, with Oakland’s minimum wage reaching $17 per hour. In Washington, seven localities, including Tukwila, which will have the highest wage at $21.10 per hour, will also see increases.
However, more than a dozen states in the South will not be impacted by these changes, as they either lack a state minimum wage or continue to follow the federal minimum of $7.25 per hour. The last federal minimum wage increase occurred in 2009, and when adjusted for inflation, it is at its lowest point since 1956, EPI reports.
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