More than 9 million workers are getting a raise on January 1. Here's where.

In 2025, millions of low-wage workers across the United States will see a boost in their earnings as 21 states prepare to increase their minimum wage starting January 1. Thirteen of these hikes are tied to state laws that adjust wages according to inflation, as reported by the Economic Policy Institute (EPI). In addition to these inflation-driven increases, six states enacted legislation facilitating wage boosts, while two states saw increases through voter-approved ballot measures.

Approximately 20% of the more than 9.2 million workers affected by these changes live in households below the poverty line, with nearly half earning less than twice that threshold, according to EPI estimates. In contrast, the federal minimum wage, which has been stagnant at $7.25 per hour since 2009, persists in 20 states despite losing 30% of its purchasing power due to inflation during that period.

Sebastian Martinez Hickey, a state economic analyst at EPI, highlighted that while the number of workers earning the federal minimum wage is relatively low, millions still face economic hardship without adequate adjustments. Currently, one-third of workers are in states with a minimum wage of $15, a figure expected to rise to nearly 50% by 2027.

For instance, in Ohio, the minimum wage will rise from $10.45 to $10.70 due to an inflation adjustment. However, EPI emphasizes that there isn’t a county in the state where a worker can earn less than $17.73 per hour and still maintain a modest standard of living. Meanwhile, in Oklahoma, voters will have the opportunity to vote on gradually raising the minimum wage to at least $15 an hour, with the scheduled vote taking place in June 2026.

Maine is also set to increase its minimum wage to $14.65, reflecting a 50-cent rise in accordance with state law and a 2016 citizens' referendum that mandates annual adjustments based on the cost-of-living index for the Northeast Region. Other states are likewise poised to implement minimum wage increases at the start of the new year, further impacting the earnings of low-wage workers across the country.