The federal minimum wage has remained unchanged in several American states for the past 15 years despite the significant rise in the cost of living year after year. However, it will increase starting January 2025, affecting over 9.2 million workers.
According to a report, the following 21 American states will implement increased wages to workers.
Alaska
Alaska will witness a $0.18 increase in minimum wages. The previous minimum wage in Alaska was $11.73. It now increased to $11.91. This 18-cent increment is a part of the annual inflation adjustment. The pay raise will affect approximately 21,600 workers directly or indirectly, resulting in a $284 average change in yearly wages.
Arizona
The minimum wage in Arizona will increase to $14.70 from the previous $14.35 starting January 2025. This 35-cent increase is due to inflation adjustment. The increased wages will impact nearly 15% of the workforce, estimated at 480,200, and lead to a $446 average change in annual salaries.
California
California will increase the minimum wage from $16 to $16.50 from January 2025. While the 50-cent increase is a result of inflation adjustment efforts, fast-food workers in this state will continue enjoying the $20 minimum wage. The new increased wages will impact 3,080,000 workers, which is nearly 18.7% of the total workforce.
Colorado
Colorado will implement a 39-cent inflation adjustment increase in minimum wages from January 2025. The new minimum hourly salary of $14.81 will replace the old $14.42, impacting 260,800 workers.
Connecticut
The new minimum wage in Connecticut will be $16.35, replacing the old $15.69 wage. The increase of 66 cents in wages is attributed to inflation adjustment. The increase may appear insignificant, but it will lead to a $729 average change in annual salaries, impacting approximately 242,800 workers.
Delaware
Delaware will have the highest increase in minimum wages compared to any other American state. The previous minimum wage of $13.25 will be replaced with $15, impacting nearly 81,400 workers. The $1.75 increment is a voter-approved annual increase from 2022-2025.
Illinois
Illinois will have a $1 increment in minimum wages as part of the legislative-approved annual increase from 2022-2025. It will replace the old minimum wage of $14 with $15 from January 2025, impacting nearly 936,200 workers.
Maine
Maine had a minimum wage of $14.15 in 2024, which will be increased to $14.65 from January 2025. The 50-cent increment is the annual adjustment tied to inflation. The rise is also a result of Maine’s law and a 2016 citizens referendum that required Maine to make yearly adjustments according to the cost-of-living index for the Northeast Region.
Michigan
Michigan’s minimum wage will increase to $10.56 from January 2025, a 23-cents increase from the old $10.33 wage. Due to a Supreme Court ruling, the minimum wage will change again on 21st February 2025. The wage will be increased to $12.48 from $10.56, highlighting a significant $1.92 increase.
Minnesota
Minnesota’s old minimum wage of $10.85 will be increased to $11.13, a $0.28 increase due to inflation adjustment. The increased wages will benefit approximately 83,600 workers, leading to a $261 average change in annual salaries.
Missouri
Missouri had a minimum wage of $12.30 in 2024, which will be replaced with $13.75 from January 2025. The increase in minimum wages by $1.45 will impact approximately 440,100 workers, resulting in $831 average change in annual salaries. The increased minimum wage of $13.75 will again rise to $15 in January 2026, and inflation adjustment will be made in the subsequent year because of the 2024 ballot measure calls.
Montana
The new minimum wage in Montana is $10.55. The old wage of $10.30 was incremented by 25 cents as annual adjustment tied to inflation. This increase will benefit almost 29,300 workers and result in a $239 average change in yearly wages.
Nebraska
Nebraska’s old minimum wage of $12 will be replaced with $13.50 from January 2025. This $1.50 increase will benefit nearly 106,600 workers, resulting in a $906 average change in annual wages. The voter-approved increase from 2022-2026 will lead to a further increase to $15, followed by inflation adjustment increases every subsequent year.
New Jersey
New Jersey will implement an inflation-adjusted wage increase, replacing the old $15.13 wage with $15.49 from January 2025. This $0.36 increase in wages will benefit approximately 610,200 workers and create a $550 average change in annual salaries.
New York
The minimum wage is increased to $15.50 in 2025 from the previous $15. However, the minimum wages in New York City, Westchester, and Long Island have been increased to $16.50 from the old $16.
Ohio
Ohio had a minimum wage of $10.45 in 2024, which is increased to $10.70 from January 2025. The 35-cent increase is due to annual adjustments tied to inflation. This increase will impact approximately 313,300 workers, resulting in a $229 average change in yearly wages.
Rhode Island
The new minimum wage in Rhode Island is $15, a $1 increase from the old $14 minimum wage. It is a legislative-approved annual increase from 2024-2025. This increase in wages will benefit nearly 65,100 workers, resulting in a $767 average change in yearly salaries.
South Dakota
South Dakota’s new minimum wage is $11.50. It is 30 cents more than the previous 11.20 wage. It is an annual inflation-based adjustment that will impact nearly 29,300 workers. The increase will result in a $275 average change in yearly salaries.
Vermont
Vermont’s old minimum wage of $13.67 will be replaced with $14.01 from January 2025. The $0.34 increment is due to annual inflation adjustments. It will benefit almost 29,100 workers, resulting in a $302 average change in yearly wages.
Virginia
Virginia’s new minimum wage is $12.41, an increase of 41 cents from the previous $12 wage. This annual inflation-adjusted increase will benefit nearly 245,500 workers, resulting in a $421 average change in annual wages.
Washington
The new minimum wage in Washington is $16.66, $0.38 more than the old minimum wage of $16.28. This annual inflation-adjusted increase will impact approximately 337,900 workers and create a $613 average change in yearly salaries.
