A sweeping set of minimum wage increases is set to take effect in 21 states in 2025, aiming to alleviate the struggle of workers living near the poverty line.
At a Glance
- More than 20 states will increase their state minimum wages in 2025.
- The federal minimum wage remains unchanged at $7.25 per hour since 2009.
- Washington, D.C. has the highest state minimum wage at $17.50 per hour.
- Delaware sees the largest increase, raising by $1.75 to $15.00 per hour.
- Older workers earning less than $17 per hour will benefit significantly.
Rising Minimum Wages Across the U.S.
In 2025, over 20 states will implement changes to their minimum wage laws, with adjustments taking effect on January 1. This movement aims to provide much-needed financial relief for workers affected by inflation. [Source #1] [Source #2] [Source #3] [Source #4]
Washington, D.C., already leading the nation with the highest state minimum wage of $17.50, exemplifies this trend. Delaware will implement the most substantial increase, raising its minimum wage by $1.75 to $15.00 per hour. [Source #1] [Source #4]
Federal Minimum Wage Stagnation
The federal minimum wage for nontipped workers, $7.25 per hour, remains unchanged since 2009. Workers have seen its purchasing power erode by 30% due to inflation. Many states are now stepping up to fill the gap left by federal inaction, emphasizing the necessity for localized solutions to wage stagnation.
The minimum wage will increase in 21 states in 2025. Here's what to know https://t.co/6BbWK2K1n0
— Quartz (@qz) December 9, 2024
“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” – Sebastian Martinez Hickey
States like Illinois, Missouri, Nebraska, and Rhode Island are implementing increases of at least $1 per hour, while others like Michigan will see two hikes in 2025.
Take a look at the states raising the minimum wage in 2025 — and join me in the fight to ensure every worker receives a fair wage in the new year! https://t.co/LMpmMj8ZMo
— Grace Meng (@Grace4NY) December 18, 2024
Implications for Seniors and the Workforce
Older workers stand to benefit significantly from these changes. Over 20% of those aged 55 and older have wages below $17 per hour. Increased minimum wages can help delay the full exit from employment and the claiming of Social Security benefits. Instead of retiring early at lower benefits, these workers may opt to continue working under improved wage conditions.
“Minimum wage increases lead to increased employment, delayed full permanent exit from employment, and delayed claiming of retirement benefits.” – Journal of Public Economics
Despite these positive trends, challenges remain, such as state minimum wages in Wyoming and Georgia still set at $5.15, although eligible employees receive the federal rate of $7.25.
