NYC Minimum Wage Increase: 2025 Update

Starting January 1st, 2025, New York City's minimum wage will jump to $16.50 per hour, a $0.50 increase. This also applies to Long Island and Westchester. The rest of the state will see a similar increase to $15.50.

This isn't a one-time change. Another $0.50 increase is scheduled for 2026, followed by annual adjustments based on the Consumer Price Index (CPI) starting in 2027, ensuring the minimum wage keeps pace with inflation.

Beyond NYC: Minimum Wage Changes in Neighboring States

New York isn't alone. Neighboring states are also adjusting their minimum wages:

• New Jersey: A $0.36 increase brings the minimum wage to $15.49 per hour for most workers. The minimum for seasonal and small employees will reach $14.53, and tipped workers will see their minimum rise to $5.62/hour.
• Connecticut: The minimum wage will increase to $16.35 per hour, a $0.66 increase from $15.69. This follows a 2019 law that linked future adjustments to the federal employment cost index.

The Bigger Picture: Minimum Wage Across the US

While many states are raising their minimum wages, the federal minimum wage remains at $7.25 per hour (even lower for tipped workers at $2.13). Twenty states, including New York, automatically adjust their minimum wage to account for inflation.

This highlights the ongoing debate about the appropriate minimum wage, ensuring fair compensation for workers across the nation.