U.S. States That Increased The Minimum Wage In January 2025

On the first day of 2025, 21 states across the U.S. decided to raise the minimum wage, bringing a wave of relief and newfound hope to millions of workers. These increases varied greatly; some states made small changes linked to yearly inflation, ensuring salaries reflect the rising cost of living. Others chose more significant jumps. Notably, California and Washington set new benchmarks, each lifting their minimum wages from $16 to $16.50 per hour.

A key trend among states increasing their minimum wage was the introduction of automatic yearly adjustments, tied to the Consumer Price Index (CPI). This approach ensures that wages grow along with inflation, making the need for new laws less frequent. Of the 21 states that upped their minimum wages, 15 adopted this method, showing a growing favor for predictable, data-driven changes that help workers' paychecks keep up with rising costs, especially with how much it really costs to live the "American dream" for a lifetime.

The recent wage increases are set to help millions, particularly those in retail, hospitality, and other low-wage sectors. These adjustments aim to ease financial burdens, although discussions are ongoing about how they might affect small businesses and job numbers. Meanwhile, the federal minimum wage has remained static at $7.25 since 2009, with no updates on the horizon. As a result, state workers are now earning up to $10 more per hour than their federal counterparts, a great disparity in income across government levels.

In Delaware, the minimum wage has reached $15 per hour, completing the last stage of a multi-year strategy set by Senate Bill 15 (SB 15), enacted in 2021. This legislation revised Title 19 of the Delaware Code to gradually raise the minimum wage over several years, with a resolution to improve wages for workers across the state, ensuring they earn a living wage, even as living costs evolved.

The increase now fills a big gap for workers in Delaware's service and retail sectors, where many earn near the minimum wage. Before the bump to $15, the state's minimum wage was $9.25 in 2019, with about 34,800 workers earning this amount — around 8% of the workforce. Another 53,000 workers made less than $10 per hour, showing that wages in these sectors were often close to the legal minimum. At the same time, Delaware is one of the five states that don't require a state sales tax commodities.

The planned increase proves states' dedication to ensure workers can earn a living wage, especially in costlier areas like Wilmington. This city is known for its high living expenses, affecting essentials like housing, education, and daily goods. For instance, renting a one-bedroom apartment in Wilmington costs around $1,305 a month on average, and daycare expenses can top $1,600 monthly. Financial hurdles are inescapable, but tuning wages during hardship is a step toward easing economic pressures.

Illinois also caught attention with a significant rise in its minimum wage, boosting it to $14 per hour across the state. In Chicago, where a separate city minimum wage is in effect, workers now earn over $15 per hour. This increase is a key component of Illinois' broader strategy under the Minimum Wage Act of 2019, which aims for a statewide minimum of $15 per hour by 2025. Through this phased plan, workers in the state's lower-wage areas have experienced gradual increases, allowing both businesses and employees ample time to adjust.

Missouri, although not hitting the high dollar marks set by states like Delaware or Illinois, made a notable move by lifting its minimum wage to $13 per hour. This follows a voter-approved ballot measure from 2018, which requires the minimum wage to rise annually, adjusted for inflation, until 2025. Still, the wage hike presents an uneven income path across the United States.

California and Washington lead with some of the highest rates, at $16.50 and $16.66 per hour respectively. In stark contrast, Georgia and Wyoming maintain the federal minimum of $7.25 per hour. Meanwhile, Montana and Missouri set their wages at $10.55 and $13.75 per hour, painting a picture of America's economy, where workers' earnings can differ depending on where they punch the clock.