Minimum wages are going up in these states – Find out if you’ll earn more this year

As of January 1, 2025, almost half of the states have in place minimum wage increases that have brought about very important pay raises for millions of workers around the country. This wave of wage hikes is one of the most important developments in the ongoing campaign to lift living standards for low-wage workers. Here is a summary of which states have raised their minimum wages and what that means for workers.

Minimum wage hikes

At the beginning of 2025, a total of 21 states have bumped up the minimum wage. Those hikes now apply to an estimated 9.2 million workers across the nation. According to the Economic Policy Institute, those increases will translate into $5.7 billion more in earnings over the course of the year. Many of those changes are attributed to inflation, along with legislative changes seeking to improve worker pay. These are the states where such hikes have been recorded:

• Alaska
• Arizona
• California
• Colorado
• Connecticut
• Delaware
• Illinois
• Maine
• Michigan
• Minnesota
• Missouri
• Montana
• Nebraska
• New Jersey
• New York
• Ohio
• Rhode Island
• South Dakota
• Vermont
• Virginia
• Washington

This is a whopping change and a sure sign of the rising sensitivity to the requirement of decent wages vis-à-vis the cost of living today.

Minimum wage rates by States

In this regard, the exact increases vary by state, with some enacting dramatic rises. Some of the bigger highlights in this regard include:

• Washington: Washington has the nation’s highest minimum wage at $16.66 an hour. 
• California: California is up to $16.50 per hour.
• New York: New York is  $15.50 an hour outside and $16.50 inside it.
• Illinois: This state has risen to $15.00 an hour.
• New Jersey: New Jersey has risen to $15.49 an hour.

Other states have had more modest increases, including:

• Alaska: Went up to $11.91 an hour.
• Missouri: Jumped to $13.75 an hour after a ballot measure.

That is meaningful because most workers don’t, in the end, make enough to cover basic living costs, especially in high-cost-of-living areas.

Effects on workers and economy

These pay increases will make a difference. It becomes clear that the pay raise is going to amply improve the lives of workers in low-wage dimensions when considering as necessary conditions for bare survival: guaranteeing basic necessities, shelter, nourishment, and healthcare.

EPI finds that nearly 20% of those workers are in poverty and less than half come from families that earn less than twice the poverty level. That finding suggests these increases are not just salutary but vital for economic security among weak communities.

Apart from this, the businesses in these states would need to absorb the hike in the budget set for the payroll of the workers. Some consider this a burden while proponents see this as something that will encourage higher wages and therefore more consumer spending to pump up local economies.

Future changes and implications

In the future, years have announced additional minimum wage increases for the remainder of 2025 and beyond:

• Oregon will once again increase its minimum wage based on Consumer Price Index, July 1.

• Florida’s minimum wage will increase from $13 to $14 an hour on September 30.

The increases follow the ongoing effort to keep wages in pace with inflation and cost-of-living hikes.

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