Millions of low-wage earners are getting a increase in 2025 as 21 states are slated to hike their minimal pay beginning Jan. 1.
State legal guidelines that index the minimal wage to inflation are behind 13 of the January will increase, in accordance with the Economic Policy Institute, or EPI, a nonprofit suppose tank. Legislation spurred the approaching pay hikes in six states, whereas poll measures ushered in wage positive factors in two.
Nearly one in 5, or 20%, of the greater than 9.2 million impacted staff reside in households under the poverty line, whereas almost half, or virtually 49%, have household incomes under twice the poverty line, EPI estimates.
Meanwhile, the federal minimal wage of $7.25 an hour hasn’t budged since 2009, and it stays the legislation in 20 states. Since then time, that base charge has misplaced 30% of its buying energy resulting from inflation, in accordance with Sebastian Martinez Hickey, a state financial analyst at EPI.
“The reality is the variety of staff that earn $7.25 per hour is sort of low, however that also means with inaction we’re leaving tens of hundreds of thousands of staff out to dry,” Martinez Hickey instructed CBS MoneyWatch.
Almost one-third of staff reside in states which have a $15 minimal wage, and by 2027 that proportion will develop to almost half, the Martinez Hickey mentioned.
Ohio’s minimal pay is growing to $10.70 from $10.45 resulting from an inflation adjustment, however there may be not a single county within the state the place a employee could make lower than $17.73 an hour and keep a modest however enough lifestyle, EPI famous.
Oklahoma voters will get the possibility to vote on steadily growing the state’s base hourly wage to at the least $15 an hour, however not for an additional 12 months and a half. Oklahoma Gov. Kevin Stitt in September signed an government order setting the vote for June 2026.
In Maine, the minimal wage will improve to $14.65, rising 50 cents. The rise comes resulting from Maine legislation and a a 2016 residents referendum, with the state required to make an annual adjustment primarily based on the cost-of-living index for the Northeast Region.
Other states with will increase going into impact in 2025 are:
- Alaska’s minimal goes to $11.91, up 18 cents, due to an inflation adjustment.
- Arizona staff will make a minimal of $14.70 come January, up 35 cents, resulting from an inflation adjustment.
- California’s minimal goes to $16.50, up 50 cents resulting from an inflation adjustment.
- Colorado’s base hour wage is rising to $14.81, up 39 cents, resulting from inflation.
- Connecticut staff will make an hourly minimal of $16.35, up 66 cents, and adjusted for inflation.
- Delaware’s minimal goes to $15.00, up $1.75, resulting from laws handed by the state.
- Illinois is taking its minimal to $15.00, a rise of $1.00, resulting from laws.
- Michigan’s minimal wage is slated to be $10.56, up 23 cents, resulting from laws.
- Minnesota’s minimal is making an inflation-adjusted transfer to $11.13, up 28 cents.
- Missouri is taking its base hourly charge to $13.75, up $1.45, due to a poll measure handed by voters.
- Montana’s minimal is because of improve to $10.55, up 25 cents, resulting from inflation.
- Nebraska employers may have pay at the least $13.50 as of January, up $1.50 due, to a poll measure.
- New Jersey’s hourly base is climbing to $15.49, up 36 cents, resulting from laws.
- New York’s minimal will likely be $15.50, up 50 cents, resulting from laws. It’s $16.50 in New York City, Long Island and Westchester.
- Rhode Island is taking its minimal up a buck to $15.00, the results of laws.
- South Dakota’s minimal is ready to hit $11.50 in 2025, up 30 cents, resulting from inflation.
- Vermont is $14.01 for a minimal hourly charge within the new 12 months, up 34 cents after an inflation adjustment.
- Virginia’s minimal goes to $12.41, up from $12.00, resulting from inflation.
- Washington’s minimal will attain $16.66, up 38 cents, resulting from inflation.
