2025 Minimum Wage: 21 States Have Increases – Is Yours On The List?

Millions of low-wage workers across the U.S. will see a raise starting Jan. 1, 2025, as 21 states increase their minimum wage.

These changes will provide better pay for those working in states with laws tied to inflation, or legislation that mandates pay increases. As these minimum wage hikes take effect, more workers will see better pay, despite the federal minimum wage still lagging behind.

State Laws and Inflation-Based Adjustments

Thirteen of the January increases are due to state laws that automatically adjust the minimum wage based on inflation.

Six states are raising wages because of new legislation, while two states passed ballot measures to approve pay hikes, CBS News Reports.

Nearly 20% of the 9.2 million workers affected by these changes live in households below the poverty line, while about 49% have family incomes below twice the poverty level, according to the Economic Policy Institute (EPI).

Federal Minimum Wage Stagnates

While 21 states are raising wages, the federal minimum wage remains unchanged at $7.25 per hour, where it has been since 2009. This rate has lost 30% of its purchasing power due to inflation, according to EPI analyst Sebastian Martinez Hickey.

Ohio's minimum wage is going up to $10.70 from $10.45 due to an inflation adjustment. However, there isn't a county in Ohio where a worker can earn less than $17.73 an hour and still cover basic living expenses.

In Maine, the minimum wage will rise to $14.65, an increase of 50 cents. This change is required by Maine law and a 2016 referendum, which mandates annual adjustments based on the cost of living in the Northeast region.

Other states where the pay raise will be implemented are:

• Alaska: Minimum wage increases to $11.91, up 18 cents, due to an inflation adjustment.
• Arizona: Minimum wage will be $14.70, up 35 cents, thanks to an inflation adjustment.
• California: Minimum wage rises to $16.50, up 50 cents, due to an inflation adjustment.
• Colorado: Base wage increases to $14.81, up 39 cents, due to inflation.
• Connecticut: Minimum wage climbs to $16.35, up 66 cents, due to inflation adjustment.
• Delaware: Minimum wage rises to $15.00, up $1.75, due to state legislation.
• Illinois: Minimum wage increases to $15.00, up $1.00, thanks to legislation.
• Michigan: Minimum wage will be $10.56, up 23 cents, due to state legislation.
• Minnesota: Minimum wage increases to $11.13, up 28 cents, with an inflation adjustment.
• Missouri: Base wage rises to $13.75, up $1.45, thanks to a voter-approved ballot measure.
• Montana: Minimum wage will rise to $10.55, up 25 cents, due to inflation.
• Nebraska: Employers must pay at least $13.50, up $1.50, due to a ballot measure.
• New Jersey: Minimum wage climbs to $15.49, up 36 cents, thanks to legislation.
• New York: Minimum wage will be $15.50, up 50 cents, due to legislation. In New York City, Long Island, and Westchester, it will be $16.50.
• Rhode Island: Minimum wage increases to $15.00, up $1.00, due to legislation.
• South Dakota: Minimum wage will increase to $11.50, up 30 cents, due to inflation.
• Vermont: Minimum wage will rise to $14.01, up 34 cents, due to an inflation adjustment.
• Virginia: Minimum wage increases to $12.41, up from $12.00, due to inflation.
• Washington: Minimum wage will be $16.66, up 38 cents, due to inflation.

In Oklahoma, voters will have the chance to vote on raising the state's minimum wage to at least $15 an hour, but the vote won't take place until June 2026, after Governor Kevin Stitt signed an order in September to set the vote date.