These states will raise the minimum wage in 2025

On January 1, 21 states will raise their minimum wage rates as part of inflation-adjusted increases or pre-scheduled hikes, impacting approximately 9.2 million workers. The Economic Policy Institute (EPI) estimates that these wage adjustments will collectively add $5.7 billion to worker earnings throughout 2025.

Washington State will emerge with the highest minimum wage in the nation at $16.66 per hour, closely followed by California and New York, which will set their minimum wages at $16.50. These changes reflect a broader trend towards higher wage floors across several states and regions.

The coming changes will raise the minimum wage to $15 an hour or more in Washington, D.C., and 10 other states, including Delaware, Illinois, and Rhode Island. EPI reports that these states employ roughly one in three workers in the U.S., highlighting the significant impact of these wage increases.

In addition to state-level changes, nearly 50 cities and localities will implement their own higher minimum pay rates. Among these, 29 cities in California will see wage increases, with Oakland reaching a $17 hourly minimum. Washington will also introduce local hikes, including Tukwila's staggering rate of $21.10 per hour.

Notably, the latest wage increases do not extend to over a dozen states, primarily in the South, where either no minimum wage exists or it remains at the federal rate of $7.25 per hour. The last federal minimum wage increase occurred in 2009, and current rates, adjusted for inflation, are at their lowest since 1956, according to EPI.