Additional pay increases for minimum wage workers across U.S are expected in 2025 as cities and states implement gradual hikes to address issues of cost of living and economic inequality. The National Employment Law Project recently released statistics showing that a number of jurisdictions are revising their US Minimum Wage Hike 2025 in the mid of the year, after a wave of increases that were implemented at the beginning of the year.
Although the minimum wage was raised on January 1 in 21 states and 48 localities, more increases are expected during the rest of 2025. In an economy still getting used to the inflationary surges that have been occurring since 2022, these changes are seen is must.
US Minimum Wage Hike 2025
According to a news, a number of states plan to raise their minimum wage rates, many with targeted increases based on industry or region, as the year ends.
- In Michigan, wages were raised to $12.48 per hour on February 21.
- Starting on July 1, Alaska is expected to increase its minimum wage to $13.00.
- On September 30, the state of Florida will raise its wage to $14, while tipped workers will get a boost to $10.98.
- Depending on facility type, California, which is renowned for its industry-specific pay rates, will increase healthcare workers’ hourly salaries to $18.63 to $24 beginning July 1.
- As of July 1, Oregon’s new standard minimum wage will be $15.05. While nonurban areas would have a $14.05 floor, rates in the Portland metro area will increase to $16.30.
The impact of Raise the Wage Act 2025
Since 2009, there has been no increase in the federal MHW, which is at only $7.25, the federal minimum wage would be gradually increased to $17 per hour by 2030 under the Raise the Wage Act of 2025, which was presented in the US Senate and House of Representatives on April 8, 2025.
Increasing the federal minimum wage to $17 by 2030 would affect millions of people nationwide, or 15% of the wage-earning workforce in the United States, according to a report. The country’s lowest-paid workers would get an additional $70 billion in pay per year as a result of the hikes; the average impacted worker who works year-round would receive an additional $3,200 annually.
City-Level Adjustments Also Underway
According to a news, urban areas, whose living expenses often surpass state averages, are also pursuing customized increases in the minimum wage in 2025.
- Starting on March 1, Santa Fe, New Mexico, went to $15 per hour.
- Starting July 1, the rate in Los Angeles County, California, will rise to $17.81 and in San Francisco will increase to $19.18 on July 1st.
- The city of Washington is getting ready to raise prices to $17.95 on the same day.
- Beginning July 1, St. Paul, Minnesota, will move its small and microbusiness rates to $15 and $13.25 respectively.
Legislative Developments Around the Country
State legislators are still debating the minimum wage, which reflects a difference in their objectives.
- Governor Glenn Youngkin of Virginia vetoed law that would have increased the rate to $13.50 in 2026 and $15 in 2027.
- Tennessee’s proposed USD 20 minimum wage has stalled in committee.
- North Carolina is still in line with the federal minimum of $7.25, but competing bills suggest raising it to either $18 by 2030 or $22 altogether.
- Aiming for a $15 minimum wage by 2027, Michigan has enacted law that includes gradual raises for tipped workers.
- Bills that would exclude specific positions, including interns and apprentices, from full pay guarantees are being considered by Florida lawmakers.
Broader Economic Context
- Inflation, which peaked at 9.1% in mid-2022, has decreased to 2.4% as of March, coinciding with the pay increases. Advocates counter that many region’s existing minimum wage levels are still insufficient to cover living expenses. They predict that around 3 million minimum wage workers would directly gain from the 2025 adjustment, and that an additional 6.2 million workers may see an increase in wages as a result of employer’s adjusting pay scales.
- Opposition, however, continues and they argue that raising the minimum wage might lead to price increases and job losses, a conflict that still influences state and federal wage policy. Senator Bernie Sanders and Rep. Bobby Scott introduced the Raise the Wage Act, that would increase the federal min. wage to $17 per hour. However, under a government dominated by Republicans, the bill is met with strong opposition.
- In discussions concerning worker justice and budgetary sustainability throughout the United States, minimum wage rules continue to be a major emphasis as long as economic difficulties exist.
Minimum wage in each state for 2025
Avoid being taken by surprise when there is a change in compliance. I have listed the state-by-state hourly minimum wages for 2025 and remember that not every town or city with minimum wage requirements are included in this list.
| State | Minimum Hourly Wage |
| Alabama | $7.25 |
| Alaska | $11.91 |
| Arizona | $14.70 |
| Arkansas | $11.00 |
| California | $16.50 |
| Colorado | $14.81 |
| Connecticut | $16.35 |
| Delaware | $15.00 |
| Florida | $13.00 |
| Georgia | $7.25 |
| Hawaii | $14.00 |
| Idaho | $7.25 |
| Illinois | $15.00 |
| Indiana | $7.25 |
| Iowa | $7.25 |
| Kansas | $7.25 |
| Kentucky | $7.25 |
| Louisiana | $7.25 |
| Maine | $14.65 |
| Maryland | $15.00 |
| Massachusetts | $15.00 |
| Michigan | $10.56 |
| Minnesota | $11.13 |
| Mississippi | $7.25 |
| Missouri | $13.75 |
| Montana | $10.55 |
| Nebraska | $13.50 |
| Nevada | $12.00 |
| New Hampshire | $7.25 |
| New Jersey | $15.49 |
| New Mexico | $12.00 |
| New York | $16.50 |
| North Carolina | $7.25 |
| North Dakota | $7.25 |
| Ohio | $10.70 |
| Oklahoma | $7.25 |
| Oregon | $14.70 |
| Pennsylvania | $7.25 |
| Rhode Island | $15.00 |
| South Carolina | $7.25 |
| South Dakota | $11.50 |
| Tennessee | $7.25 |
| Texas | $7.25 |
| Utah | $7.25 |
| Vermont | $14.01 |
| Virginia | $12.41 |
| Washington, D.C. | $17.50 |
| Washington | $16.66 |
| West Virginia | $8.75 |
| Wisconsin | $7.25 |
| Wyoming | $7.25 |
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