Beginning July 1, 2025, hundreds of thousands of workers across the United States will see their paychecks increase as several states and cities implement higher minimum wage rates. These wage hikes are part of a broader move by local governments to address the rising cost of living, especially as the federal minimum wage remains unchanged at $7.25 per hour since 2009. According to the Economic Policy Institute (EPI), this wave of increases will directly benefit over 800,000 workers in Alaska, Oregon, and Washington, D.C., along with many others in cities and counties primarily across California.
The changes vary by location. Alaska will raise its minimum wage by $1.09 to $13.00 per hour, while Washington, D.C. will see a 45-cent increase to $17.95. Oregon’s new rate will be $15.05 after a 35-cent adjustment. Meanwhile, 12 cities and counties—10 of which are in California—are also raising their local minimum wages. Notable examples include Emeryville, which will offer nearly $20 per hour, and San Francisco and Berkeley, where the minimum wage will increase to $19.18. Other places, including Chicago and Montgomery County in Maryland, will also see smaller but meaningful bumps in pay.
These changes are expected to provide critical support to low-income families. Analysts highlight that the majority of workers who benefit are women, with Black and Hispanic communities seeing greater advantages. While these local efforts mark progress, calls for raising the federal minimum wage continue, with a new bipartisan proposal introduced in Congress seeking to increase it to $15 per hour.
Minimum Wage Increases Starting July 1: Full Breakdown
The federal minimum wage of $7.25 per hour has not changed in over 15 years. With inflation and cost of living on the rise, many states and cities have taken action to ensure workers earn enough to meet basic needs. These increases are happening through local legislation, ballot measures, or inflation-based adjustments.
Statewide and D.C. Minimum Wage Changes
| Location | New Minimum Wage | Increase Amount | Estimated Workers Affected | Average Annual Pay Boost |
|---|---|---|---|---|
| Alaska | $13.00/hour | +$1.09 | 19,400 (6.3% of workforce) | $925 |
| Washington, D.C. | $17.95/hour | +$0.45 | 62,200 (7.5%) | $727 |
| Oregon | $15.05/hour | +$0.35 | 801,700 (9.4%) | $420 |
City and County Wage Increases
California (10 jurisdictions)
| City/County | New Minimum Wage |
|---|---|
| Alameda | $17.46/hour |
| Emeryville | Nearly $20/hour |
| San Francisco | $19.18/hour |
| Berkeley | $19.18/hour |
| Los Angeles Area | Just under $18/hour |
| (Others not named) | Increase of 45–59 cents/hour |
Other Regions
| Location | New Minimum Wage | Increase |
|---|---|---|
| Chicago, Illinois | $16.60/hour | +$0.40 |
| Montgomery County, MD | $17.65/hour | +$0.50 |
Who Benefits Most
- 58% of those gaining from the wage increases are women.
- Black and Hispanic workers are expected to benefit more than other groups.
- Many of these workers are in full-time, low-wage positions and rely on this boost to help support their households.
“These minimum wage increases will put more money in workers’ pockets, helping many of them and their families make ends meet,” said Sebastian Martinez Hickey, EPI’s state economic analyst.
What Comes Next
Despite these regional gains, there is growing pressure on the federal government to take action. In June, Senators Josh Hawley (Republican – Missouri) and Peter Welch (Democrat – Vermont) introduced a bipartisan bill aiming to raise the federal minimum wage to $15 per hour—more than double the current rate.
Employers across affected regions must stay informed and adjust their payroll systems accordingly by July 1 to remain compliant with the new regulations.
