More than 9 million workers are getting a raise on January 1. Here’s where.
Twenty-one states plan to raise their minimum wages starting on January 1, with millions of low-income earners set to receive a raise in 2025.
According to the Economic Policy Institute (EPI), a nonprofit think tank, there were 13 wage increases in January resulting from state laws linking the minimum wage to inflation. The legislation spurred upcoming wage increases in six states, while ballot measures resulted in wage increases in two states.
EPI estimates that of the more than 9.2 million affected workers, nearly one-fifth, or 20%, of households live below the poverty line, while nearly half, or nearly 49%, of households have incomes below twice the poverty line.
Meanwhile, the federal minimum wage of $7.25 an hour has not changed since 2009 and remains the law in 20 states. Since then, the purchasing power of the base rate has fallen by 30% due to inflation, said EPI state economic analyst Sebastian Martinez Hickey.
“The fact is, the number of workers making $7.25 an hour is pretty low, but it still means that if we don’t take action, we’re going to leave tens of millions of workers in limbo,” Martinez Hickey told CBS MoneyWatch.
Nearly one-third of workers live in states with a $15 minimum wage, and that share will expand to nearly half by 2027, Martinez Hickey said.
EPI noted that Ohio’s minimum wage increased from $10.45 to $10.70, adjusted for inflation, but there was no county in the state where workers earned less than $17.73 an hour and maintained a modest but adequate standard of living.
Oklahoma voters will have a chance to vote on gradually increasing the state’s base hourly wage to at least $15, but that won’t last another year and a half. Oklahoma Gov. Kevin Stitt signed an executive order in September setting a June 2026 voting date.
Maine’s minimum wage will rise 50 cents to $14.65. This increase is due to Maine law and a 2016 referendum requiring annual adjustments based on the Northeast’s Cost of Living Index.
Other states taking effect in 2025 include:
- Adjusted for inflation, Alaska’s minimum cost of living will rise 18 cents to $11.91.
- Adjusted for inflation, Arizona workers’ minimum earnings in January will be $14.70, up 35 cents.
- Adjusted for inflation, California’s minimum will rise 50 cents to $16.50.
- Due to inflation, Colorado’s base hourly wage increased 39 cents to $14.81.
- The minimum hourly wage for Connecticut workers will be $16.35, an increase of 66 cents (adjusted for inflation).
- Due to the legislation passed in Delaware, the minimum limit in Delaware will increase by $1.75 to $15.00.
- Under the legislation, Illinois raised the minimum to $15.00, an increase of $1.00.
- Under the legislation, Michigan’s minimum wage is projected to be $10.56, an increase of 23 cents.
- Minnesota’s lowest price rose 28 cents to $11.13, adjusted for inflation.
- Missouri is increasing base hourly wages by $1.45 to $13.75, thanks to a ballot measure approved by voters.
- Due to inflation, Montana’s minimum wage will increase to $10.55, a 25-cent increase.
- Nebraska employers will pay at least $13.50 in wages through January, with an increase of $1.50 based on the vote.
- As a result of the legislation, New Jersey’s hourly base climbed to $15.49, up 36 cents.
- Under the legislation, the minimum price in New York is $15.50, an increase of 50 cents. It’s $16.50 in New York City, Long Island and Westchester.
- Under the legislation, Rhode Island would raise the minimum $1 to $15.
- Due to inflation, South Dakota’s minimum cost of living will reach $11.50 in 2025, an increase of 30 cents.
- Vermont’s minimum wage will be $14.01 an hour in the new year, up 34 cents after adjusting for inflation.
- Due to inflation, Virginia’s minimum wage increased from $12.00 to $12.41.
- Due to inflation, the lowest price in Washington state will be $16.66, an increase of 38 cents.
