Finance
New minimum wage in Texas for 2025: These cities will see an increase
Certain Texas workers are set to see changes in the minimum wage for 2025, with key cities introducing substantial increases. Here’s what you need to know.
The federal minimum wage in the United States has remained stagnant at $7.25 per hour since 2009. This 16-year freeze marks the longest period without adjustment since the minimum wage was first established in 1938. As the cost of living continues to rise, this outdated figure has left many families struggling to meet basic needs.
In response, 30 states and the District of Columbia have enacted laws that set minimum wages above the federal level. These states typically adjust wages annually to align with inflation and living costs. However, states like Texas, which adhere to the federal baseline, have left many workers at a disadvantage.
Texas cities step up
Despite the state’s reliance on the federal minimum wage, some Texas cities have introduced measures to increase pay for their city employees and in some cases those with on contracts with the local government. Austin, Dallas, Houston, Fort Worth, and San Antonio are leading the charge with significant wage hikes for 2025.
Austin: The City Council increased the Living Wage for regular and temporary city employees to $21.63 per hour—nearly three times the federal rate—effective October 2024. This bold move aims to address Austin’s soaring living costs.
Houston: The Harris County Commissioners voted unanimously to raise the minimum wage to $15.00 per hour for county contract workers, matching what county employees are paid.
Dallas: The City of Dallas implemented a policy requiring annual adjustments to the minimum wage for general service contracts. The Living Wage for 2025 is $22.05 per hour, an increase of $3.81 from 2024.
Fort Worth: Effective October 1, 2024, the minimum wage for regular and temporary city employees increased to $16.07. However, starting with paychecks on February 14, 2025, the minimum wage will increase to $18.00 per hour.
San Antonio: While there is no across the board minimum wage increase from the current $18 for city employees, those with more than five years of tenure or relevant experience will see their pay adjusted to a specific percentage of their pay range if they are not already paid that amount.
Competing on a national scale
With these increases, Texas’s major cities are beginning to compete with states like Washington, California, and New York, as well as the District of Columbia, where minimum wages range between $16 and $17 per hour. However, in the case of those places, the minimum wages apply to all workers and not just city employees or those with contracts with the local government.
Original article written by Daniela Barrera, translated with the assistance of AI and edited by Greg Heilman.
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