21 States With Minimum Wage Increases in January 2025

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Minimum wage employees in 21 states are getting a raise to start out the brand new 12 months because of ballot measures, laws and inflation adjustments.

In some states, the minimum wage increases are modest, in accordance with a December report from the Economic Policy Institute. For instance, Alaska’s minimum wage rose by just 18 cents. But in five states — Delaware, Illinois, Missouri, Nebraska and Rhode Island — the hike is $1 or more.

The left-leaning think tank argues that the minimum wage is a “powerful tool for combating racial and gender wage disparities,” declaring that “Black and Hispanic employees will disproportionately profit” from the 2025 increases. Hispanic employees represent 19.5% of the workforce within the 21 states where minimum wages are going up but make up 38.8% of the population getting higher wages. Meanwhile, 58.8% of the employees getting a bump are women.

The minimum wage increases, which took effect Wednesday, profit greater than 9.2 million people, in accordance with the report. Nevertheless it’s essential to notice that this math assumes that employers maintain their payrolls with the upper wage requirements in place. (Critics of upper minimum wages argue that these laws burden businesses and might force tough decisions about raising prices or reducing staffing.)

While the federal minimum wage has been unchanged for 15 years at $7.25 per hour, most states have higher minimums. Following the most recent changes, 19 states have minimum wages of $15 per hour or more.

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States with minimum wage adjusted for inflation in 2025

As of Wednesday, 14 states have hiked their minimum wages resulting from inflation adjustments that kicked in mechanically under state laws.

Inflation adjustments, which aim to assist employees sustain with rising costs, typically aren’t as sizable as minimum wage increases enacted by voters or lawmakers, but many employees stand to make tons of of dollars more per 12 months because of this of those changes. (The typical full-time employee will get a $420 bump in annual pay in these states.)

Listed below are the states with higher minimum wages following inflation adjustments:

Alaska: $11.73 per hour to $11.91 (+18 cents)
Arizona: $14.35 to $14.70 (+35 cents)
California: $16 to $16.50 (+50 cents)
Colorado: $14.42 to $14.81 (+39 cents)
Connecticut: $15.69 to $16.35 (+66 cents)
Maine: $14.15 to $14.65 (+50 cents)
Minnesota: $10.85 to $11.13 (+28 cents)
Montana: $10.30 to $10.55 (+25 cents)
Latest Jersey: $15.13 to $15.49 (+36 cents)
Ohio: $10.45 to $10.70 (+25 cents)
South Dakota: $11.20 to $11.50 (+30 cents)
Vermont: $13.67 to $14.01 (+34 cents)
Virginia: $12 to $12.41 (+41 cents)
Washington: $16.28 to $16.66 (+38 cents)

States with minimum wage law changes in 2025

Staff in seven states are actually covered by higher minimum wages resulting from ballot measures and laws. Voters in Nebraska and Missouri previously passed ballot measures that lift their minimum wages in increments ultimately to $15 per hour in 2026, and lawmakers in five other states approved minimum wage hikes effective Jan. 1.

Listed below are the states with minimum wage law changes for 2025: