In the United States, the government minimum wage stays the same in 2024. This continues a trend that began in 2009, when it was last raised to $7.25 an hour. Even so, many workers benefit from the higher minimum wages that cities and states across the country have put in place. This is especially true in places with very high costs of living, where people would not be able to live without them.
Notably, the District of Columbia and 30 states have passed laws that allow the minimum wage to be changed every year, usually based on the cost of living. This is done to make sure that workers’ buying power stays the same over time and that they don’t have to rely too much on benefits to make ends meet.
New York is one of the places that has set up a system where the minimum wage goes up every year. Because of this, workers in the state can expect their pay to go up in 2025. There are different minimum wages in different parts of New York because not all of the state is as expensive as the Big Apple.
Right now, people who work in New York City, Long Island, and Westchester County make at least $16 an hour. People who work in the rest of the state make at least $15 an hour. These rates will go up, though, on January 1, 2025. In New York City, Long Island, and Westchester County, the minimum wage will go up to $16.50 an hour.
In the rest of the state, it will go up to $15.50 an hour. Even though it may not seem like much, this $0.50 increase per hour will help families and individuals better pay to live in their current area and make their living conditions better when prices go up.
New York’s strategy for the future of Minimum Wage
In the years to come, more rises are planned after 2025. The office of Governor Kathy Hochul said in May 2023 that there would be another automatic rise of $0.50 per hour in January 2026. This means that the minimum wage will go up to $17 an hour in New York City, Long Island, and Westchester County on January 1, 2026. In the rest of the state, it will go up to $16 an hour.
When New York raises the minimum wage after 2026, things will be different. Instead of automatic raises that are set ahead of time, future changes will be based on inflation. In the Northeast, the minimum wage will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) starting in 2027.
Roberta Reardon, commissioner of the New York State Department of Labour, said, “Raising the minimum wage is a lifeline for New Yorkers who are struggling to make ends meet as prices rise.” Changes that happen slowly over a number of years give companies time to adapt and help low-wage workers better support their families.
The goal of this change is to make sure that wage increases keep up with the cost of living and help workers keep their buying power over time. A lot of people have said that this measure isn’t good enough for seniors when it comes to retirement benefits and other federal government benefits, but it was made for workers, so it makes sense that it would meet their needs.
As Governor Hochul made clear, “tying the minimum wage to inflation will help keep workers’ wages’ purchasing power from year to year.” Overall, raising the minimum wage helps low-income workers the most, especially women and people of colour, who make up a disproportionately large share of minimum wage workers.
Linking future wage rises to inflation is a way for the government to help low-income workers and make sure that their pay keeps up with rising costs. This strategy should have a big positive effect on people who depend on minimum wage jobs, especially people from groups that are over-represented in these jobs.