Millions of American workers will receive pay increases in the upcoming year. In 49 US cities and counties as well as 19 states, minimum wage rates will increase on January 1.
For many Americans who are trying to make ends meet due to rising costs for everything from food to electricity, that is excellent news.
According to Yannet Lathrop, senior researcher and policy analyst at the National Employment Law Project, which summarized the impending minimum wage increases, "the cost of living has been top of mind for workers." "For workers and families at the lower end of the pay scale, paychecks simply do not cover the basic necessities."
By this time next year, the minimum wage for hourly workers will have been raised in 22 states as well as 66 cities and counties.
A handful will achieve or surpass $17 per hour, and many will reach or surpass the $15 minimum wage for some or all employees. For instance, the hourly rate in Denver will go from $18.81 to $19.29, which is significantly more than the $15.16 state minimum wage.
In 2020, the minimum wage for the entire city was $12.85 per hour. Denver swiftly reacted when Colorado relaxed its prohibition on local governments implementing higher local wages.
For instance, the minimum wage in Arizona will increase from $14.70 to $15.15 per hour. The hourly wage in Nebraska will increase from $13.50 to $15, whereas in New York City it will go from $16.50 to $17.
Missouri will increase from $13.75 to $15. The wage threshold for long-term care workers in New Jersey will increase from $18.49 to $18.92 per hour.
"At a time when every dollar matters for people, the upcoming minimum wage increases offer a bit of relief, but they are incremental and won't magically turn severely underpaid jobs into living-wage jobs," Lathrop stated.
"In the grand scheme of things, increasing the minimum wage is only one aspect of a much greater battle for a good jobs economy based on living wages and good benefits for every working person. We must reach that point," she continued.
While the majority of salary raises take effect on January 1st, several locations have postponed their adjustments until later in the year.
On July 1, 2026, for instance, a number of state and local governments will raise their minimum salaries. On September 30, 2026, Florida will raise its minimum wage by $1 to $15.00 per hour. A number of governments will increase pay for some or all employees twice a year.
Changes in the minimum wage may occasionally depend on the size of the firm. For example, in the city of Novato, California, the base wage will rise in proportion to the number of employees that a firm employs.
The minimum wage will increase to $17.73 per hour for Novato firms with more than 100 employees. The base compensation for companies employing 26-99 workers will be $17.46.
The minimum wage will be $16.90 for small businesses, or those with 25 or less employees. Everett and Renton are two Washington state communities where salary increases depending on a company's workforce size are due.
To put everything in perspective, a survey from the Economic Policy Institute (EPI) estimates that 26 million workers roughly 18% of the US workforce are paid less than $17 per hour.
Actually, 20 states, including Alabama, Iowa, Texas, and Wyoming, have minimum wages of $7.25. That corresponds to the federal minimum wage. Since 2009, the federal wage floor has been $7.25 per hour under the Fair Labor Standards Act.
