The year 2025 brings some welcome news for millions of American workers: minimum wages are rising in 21 states. If you are wondering if your state is included and what it means for your paycheck or business, you are in the right place.
Thanks to cost-of-living adjustments, inflation, and new laws passed over the last few years, minimum wages are getting a boost. Some increases were planned years ago, while others are automatic adjustments linked to inflation. Either way, it is a big deal for more than 9 million workers.
Overview
Here is a quick overview of what’s happening:
| Topic | Details |
|---|---|
| Number of states raising wages | 21 states |
| Largest minimum wage increase | Washington: $16.66 per hour |
| States reaching $15/hr or more | CA, CT, DE, IL, MA, NJ, NY, RI |
| Smallest minimum wage increase | Montana: $10.55 per hour |
| Reason for increases | Legislation, inflation, ballot measures |
| Total workers affected | Over 9.2 million |
| Additional income earned | Estimated $5.7 billion in 2025 |
| Cities with highest increases | Tukwila, WA: $21.10 per hour |
| Fast food workers in CA | New $20/hour minimum wage |
If you want official details, you can always check the U.S. Department of Labor website.
States
Here are the states raising the minimum wage in 2025:
| State | New Minimum Wage | Increase Type |
|---|---|---|
| Alaska | $11.91 | Inflation adjustment |
| Arizona | $14.70 | Inflation adjustment |
| California | $16.50 | Legislative action |
| Colorado | $14.81 | Inflation adjustment |
| Connecticut | $16.35 | Inflation adjustment |
| Delaware | $15.00 | Legislative increase |
| Illinois | $15.00 | Legislative increase |
| Maine | $14.65 | Inflation adjustment |
| Massachusetts | $15.00 | Legislative increase |
| Michigan | $10.56 | Legislative increase |
| Minnesota | $11.13 | Inflation adjustment |
| Missouri | $13.75 | Ballot measure |
| Montana | $10.55 | Inflation adjustment |
| Nebraska | $13.50 | Ballot measure |
| New Jersey | $15.49 | Inflation adjustment |
| New Mexico | $13.50 | Legislative increase |
| New York | $15.50 | Legislative increase |
| Ohio | $10.70 | Inflation adjustment |
| Rhode Island | $15.00 | Legislative increase |
| South Dakota | $11.50 | Inflation adjustment |
| Vermont | $14.01 | Inflation adjustment |
| Virginia | $12.41 | Legislative increase |
| Washington | $16.66 | Inflation adjustment |
If you live in one of these states, expect a bigger paycheck starting soon.
Reasons
Several factors are behind these increases:
- Inflation adjustments automatically raise wages in states like Arizona and Vermont
- Legislative action led to pre-scheduled increases in states like California and Illinois
- Voter-approved ballot measures boosted wages in Nebraska and Missouri
- Industry-specific moves, like California’s $20 per hour for fast food workers, add even more
States are stepping in where federal rules have remained unchanged for years.
Impact
Let’s look at how these increases affect everyone:
For Workers
- Paychecks get a healthy bump, offering better financial security
- Higher wages help workers keep pace with rising housing, food, and energy costs
- Job satisfaction tends to improve, leading to lower turnover
- States with higher wages may attract more skilled workers
For Employers
- Businesses will need to adjust their labor budgets
- Some companies might raise prices to cover new labor costs
- Others may invest in automation to reduce the need for more workers
- Employers must stay updated on wage laws to avoid legal trouble
Future
While state wages rise, the federal minimum wage is still stuck at $7.25 an hour, where it has been since 2009. With more states raising their standards, pressure will likely grow for Congress to revisit the federal minimum wage soon.
Until then, it is the states that are leading the way in making sure workers earn a living wage.
FAQs
Which states have a $15 minimum wage in 2025?
California, Connecticut, Delaware, Illinois, Massachusetts, New Jersey, New York, and Rhode Island.
What is the highest minimum wage in 2025?
Washington state at $16.66 per hour.
Why are states raising the minimum wage?
Reasons include inflation adjustments, legislation, and ballot measures.
How many workers are affected by the 2025 increases?
Over 9.2 million workers will see higher pay.
Is the federal minimum wage increasing too?
No, the federal minimum wage remains at $7.25 per hour.
