More than 9 million workers are getting a raise on Jan. 1. Here's where.
Millions of low-wage earners are getting a raise in 2025 as 21 states are slated to hike their minimum pay starting Jan. 1.
State laws that index the minimum wage to inflation are behind 13 of the January increases, according to the Economic Policy Institute, or EPI, a nonprofit think tank. Legislation spurred the coming pay hikes in six states, while ballot measures ushered in wage gains in two.
Nearly one in five, or 20%, of the more than 9.2 million impacted workers reside in households below the poverty line, while nearly half, or almost 49%, have family incomes below twice the poverty line, EPI estimates.
Meanwhile, the federal minimum wage of $7.25 an hour hasn't budged since 2009, and it remains the law in 20 states. Since then time, that base rate has lost 30% of its purchasing power due to inflation, according to Sebastian Martinez Hickey, a state economic analyst at EPI.
"The truth is the number of workers that earn $7.25 per hour is quite low, but that still means with inaction we are leaving tens of millions of workers out to dry," Martinez Hickey told CBS MoneyWatch.
Almost one-third of workers live in states that have a $15 minimum wage, and by 2027 that percentage will expand to nearly half, the Martinez Hickey said.
Ohio's minimum pay is increasing to $10.70 from $10.45 due to an inflation adjustment, but there is not a single county in the state where a worker can make less than $17.73 an hour and maintain a modest but adequate standard of living, EPI noted.
Oklahoma voters will get the chance to vote on gradually increasing the state's base hourly wage to at least $15 an hour, but not for another year and a half. Oklahoma Gov. Kevin Stitt in September signed an executive order setting the vote for June 2026.
In Maine, the minimum wage will increase to $14.65, rising 50 cents. The rise comes due to Maine law and a a 2016 citizens referendum, with the state required to make an annual adjustment based on the cost-of-living index for the Northeast Region.
Other states with increases going into effect in 2025 are:
- Alaska's minimum is going to $11.91, up 18 cents, thanks to an inflation adjustment.
- Arizona workers will make a minimum of $14.70 come January, up 35 cents, due to an inflation adjustment.
- California's minimum is going to $16.50, up 50 cents due to an inflation adjustment.
- Colorado's base hour wage is rising to $14.81, up 39 cents, due to inflation.
- Connecticut workers will make an hourly minimum of $16.35, up 66 cents, and adjusted for inflation.
- Delaware's minimum is going to $15.00, up $1.75, due to legislation passed by the state.
- Illinois is taking its minimum to $15.00, an increase of $1.00, due to legislation.
- Michigan's minimum wage is slated to be $10.56, up 23 cents, due to legislation.
- Minnesota's minimum is making an inflation-adjusted move to $11.13, up 28 cents.
- Missouri is taking its base hourly rate to $13.75, up $1.45, thanks to a ballot measure passed by voters.
- Montana's minimum is due to increase to $10.55, up 25 cents, due to inflation.
- Nebraska employers will have pay at least $13.50 as of January, up $1.50 due, to a ballot measure.
- New Jersey's hourly base is climbing to $15.49, up 36 cents, due to legislation.
- New York's minimum will be $15.50, up 50 cents, due to legislation. It's $16.50 in New York City, Long Island and Westchester.
- Rhode Island is taking its minimum up a buck to $15.00, the result of legislation.
- South Dakota's minimum is set to hit $11.50 in 2025, up 30 cents, due to inflation.
- Vermont is looking at $14.01 for a minimum hourly rate in the new year, up 34 cents after an inflation adjustment.
- Virginia's minimum is going to $12.41, up from $12.00, due to inflation.
- Washington's minimum will reach $16.66, up 38 cents, due to inflation.
