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In 2025, minimum wages will rise in 21 states, impacting millions of American workers.
At a Glance
- Minimum wages in over 20 states to increase in 2025, many effective January 1st.
- Federal minimum wage remains at $7.25 per hour, losing purchasing power.
- Washington, D.C. leads with the highest state-level minimum wage at $17.50 per hour.
- Delaware sees the largest hike, raising its rate to $15.00.
State-Level Wage Hikes
In 2025, over 20 states will initiate minimum wage increases, with changes largely effective January 1. This shift follows new laws, inflation adjustments, and popular votes, offering relief to workers amid stagnant federal wage levels.
States like California, New York, and Washington are leading efforts to improve compensation for struggling families. An increase in these wages is crucial to help those living near the poverty threshold.
The minimum wage will increase in 21 states in 2025. Here’s what to know https://t.co/6BbWK2K1n0
— Quartz (@qz) December 9, 2024
Federal Minimum Wage Context
The federal minimum wage for non-tipped employees remains $7.25 per hour, a rate untouched since 2009. Due to inflation, its purchasing power has decreased by about 30%. Meanwhile, individual states are stepping up to bridge this gap, aiming for higher standards.
Washington, D.C. stands out with the highest state-level minimum wage at $17.50 per hour. Delaware will implement the largest bump in 2025, raising its wage to $15 per hour.
Take a look at the states raising the minimum wage in 2025 — and join me in the fight to ensure every worker receives a fair wage in the new year! https://t.co/LMpmMj8ZMo
— Grace Meng (@Grace4NY) December 18, 2024
Impact on American Workers
Older workers, many earning less than $17 per hour, stand to benefit significantly from these changes. Increased wages can enable them to delay claiming Social Security and other retirement benefits, potentially increasing their long-term financial stability.
Workers in states like Illinois, Missouri, Nebraska, and Rhode Island will see wages rise by at least $1, whereas Michigan will experience two increases due to a court decision. This is a pivotal moment for labor markets across the nation.