Minimum Wage Is Increasing In These 21 States This Year

More than nine million U.S. workers across 21 states got a pay bump on Wednesday as the new year ushered in new increases to minimum wage.

The increases ranged from 18 cents to $1.75 per hour. Pay went up by $5.7 billion in total from 2024 to 2025, according to the economic research think tank the Economic Policy Institute (EPI). The EPI found that the majority of workers getting a raise, almost three in five, are women and about half are full-time workers.

Related: 6 Ways California’s New Minimum Wage for Fast Food Workers Will Hurt Franchises — And Consumers

The federal minimum wage is still $7.25 per hour, a rate that has stayed the same for 15 years.

“While the federal minimum wage continues to stagnate, state and local lawmakers have recognized the need to lift wages for millions of workers,” EPI state economic analyst Sebastian Martinez Hickey wrote in a blog post for EPI.

Hickey gave the example of California establishing a $20 minimum wage for fast food workers in April 2024, which he claimed led to “higher pay for workers with no measurable decrease in employment.” However, the law increased prices for consumers by over 8% at chains like Chipotle and Starbucks in California, according to research conducted by analyst Mark Kalinowski, President and CEO at Kalinowski Equity Research. Kalinowski found that the price of a Chipotle chicken burrito increased by 8.3% from February to April.

The law also led two major Pizza Hut franchisees in California, which own hundreds of locations, to eliminate the delivery driver position in January 2024, ahead of the minimum wage hike, according to Nation’s Restaurant News. Rubio’s Coastal Grill also said in a statement in May that it was closing 48 locations in the state because of rising costs.

Related: Fast-Food Workers in California Now Earn a $20 Minimum Wage — Here’s How This Will Impact Franchising

California on Wednesday increased its minimum wage from $16 in 2024 to $16.50 in 2025, with New York (NYC, Long Island, and Westchester) implementing an identical change. The state with the highest increase was Delaware, which bumped up its minimum wage by $1.75 from $13.25 in 2024 to $15 in 2025. The average full-time minimum wage worker in Delaware will earn $1,200 more per year.

Nebraska had the second-highest change, with a $1.50 increase in the minimum wage from $12 to $13.50.

Here’s a complete list of states with minimum wage increases in 2025.

Alaska

2024 minimum wage: $11.73

2025 minimum wage: $11.91

Increase: $0.18

Arizona

2024 minimum wage: $14.35

2025 minimum wage: $14.70

Increase: $0.35

California

2024 minimum wage: $16

2025 minimum wage: $16.50

Increase: $0.50

Colorado

2024 minimum wage: $14.42

2025 minimum wage: $14.81

Increase: $0.39

Connecticut

2024 minimum wage: $15.69

2025 minimum wage: $16.35

Increase: $0.66

Delaware

2024 minimum wage: $13.25

2025 minimum wage: $15

Increase: $1.75

Illinois

2024 minimum wage: $14

2025 minimum wage: $15

Increase: $1

Maine

2024 minimum wage: $14.15

2025 minimum wage: $14.65

Increase: $0.50

Michigan

2024 minimum wage: $10.33

2025 minimum wage: $10.56

Increase: $0.23

Minnesota

2024 minimum wage: $10.85

2025 minimum wage: $11.13

Increase: $0.28

Missouri

2024 minimum wage: $12.30

2025 minimum wage: $13.75

Increase: $1.45

Montana

2024 minimum wage: $10.30

2025 minimum wage: $10.55

Increase: $0.25

Nebraska

2024 minimum wage: $12.00

2025 minimum wage: $13.50

Increase: $1.50

New Jersey

2024 minimum wage: $15.13

2025 minimum wage: $15.49

Increase: $0.36

New York (NYC, Long Island, and Westchester)

2024 minimum wage: $16

2025 minimum wage: $16.50

Increase: $0.50

New York (remainder of state)

2024 minimum wage: $15

2025 minimum wage: $15.50

Increase: $0.50

Ohio

2024 minimum wage: $10.45

2025 minimum wage: $10.70

Increase: $0.25

Rhode Island

2024 minimum wage: $14

2025 minimum wage: $15

Increase: $1

South Dakota

2024 minimum wage: $11.20

2025 minimum wage: $11.50

Increase: $0.30

Vermont

2024 minimum wage: $13.67

2025 minimum wage: $14.01

Increase: $0.34

Virginia

2024 minimum wage: $12

2025 minimum wage: $12.41

Increase: $0.41

Washington

2024 minimum wage: $16.28

2025 minimum wage: $16.66

Increase: $0.38

For the full report, click here.