These US states will raise the minimum wage in 2025: new amounts and when they come into effect

It’s been 15 years since the last federal minimum wage increase. The current rate of $7.25 per hour went into effect in 2009, and while there have been proposals to raise it, none have been approved. Fortunately for millions of workers, 30 states and the District of Columbia have higher minimum wages, and some of these states will raise them even higher in 2025.

Several states have automatic annual increases in the minimum wage, while others link their increases to the cost of living and inflation. More than 20 states in the Union have increases scheduled for 2025, including California, Florida, Illinois and New York. We share with you all the details, new amounts and the exact date on which they come into effect.

These US states will raise the minimum wage in January 2025

The US states that will raise their minimum wages starting January 1, 2025 are: Alaska, Arizona, California, Colorado, Connecticut, South Dakota, Delaware, Illinois, Maine, Michigan, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oklahoma, Rhode Island, Vermont, Virginia and Washington.

This is how the minimum wage will increase in each state starting January 1 of next year:

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The strange case of the minimum wage in California

California will also raise the minimum wage in 2025, but the figure has not yet been confirmed, as there are two possible options: an increase under current law or based on the results of a proposal that was put to a vote this November.

Current law provides that the minimum wage in California may increase each year by 3.5 percent or by the rate of change in the averages of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the prior year to the current year, whichever is less, unless those averages are negative.

This year, the CPI-W comparative data showed changes of 3.18 percent, so under this legislation, the minimum wage in California would increase to $16.50 beginning January 1, 2025.

On the other hand, California voters have been given the power to decide whether the minimum wage increases to $18 starting in 2025. If approved, starting January 1, 2025, employers with 26 or more workers must pay a minimum wage of $18. On the other hand, for employers with 25 or fewer workers, the minimum wage would reach $18 on January 1, 2026.

With about 96% of the votes counted, 50.8% of voters voted against raising the minimum wage to $18 per hour. If the measure does not pass, the minimum wage in California will rise to $16.50 in January 2025.

These US states will raise wages in other months of 2025

On the other hand, Michigan, Oregon and the District of Columbia have increases scheduled for July of next year, while Florida will increase its minimum wage in September 2025.

Michigan will raise its minimum wage starting July 1 from $10.56 to $12.48. The District of Columbia and Oregon have not yet confirmed their next minimum wage amounts. In Florida, the state minimum wage will rise to $14 on September 30.

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