The minimum wage in California is one of the highest in the United States. And for 2025, a new adjustment was announced, which will raise even more the amount that workers receive for their work activities. This measure will benefit millions of employees in the state, who will see this increase in their income thanks to the current legislation that regulates annual changes.
In 2024, the minimum wage in California, governed by Gavin Newsom, rose to $16 per hour. And starting in 2025, workers will receive an increase based on the rate of change of the Consumer Price Index (CPI-W). It will also remain one of the states with the highest wage guarantees nationwide.
When will the minimum wage increase for California workers?
California workers will see this increase reflected in their minimum wage starting January 1, 2025. This adjustment will be USD 0.50, setting the rate at USD 16.50 per hour. It should be recalled that such adjustment is determined by current state legislation, which enables annual increases based on the inflation rate or a maximum of 3.5%, whichever is lower.
When comparing the CPI-W averages of recent years, the recorded rate of change was 3.18%. This percentage is the one that defined the 2025 increase under the current regulations. It should be recalled that these regulations seek to guarantee a competitive salary, without exceeding the margins established by the national authorities.
In the context of this announcement confirming the increase in California’s minimum wage, some important clarifications must be made. One of them is that fast food restaurant workers in that state will continue to receive a minimum wage of $20 per hour. On the other hand, this measure will allow cities and counties to set amounts higher than the state minimum wage.
What will happen to the minimum wage in other states?
It should be noted that California has not been the only state to confirm increases in its minimum wage. There are other increases scheduled for 2025. In fact, more than 20 states in the U.S. will see a wage increase as of January 1. Here we leave you the list with all the places that will benefit from the current legislation:
- Alaska
- Arizona
- Colorado
- Connecticut
- South Dakota
- Delaware
- Illinois
- Maine
- Michigan
- Missouri
- Montana
- Nebraska
- New Jersey
- New York
- Ohio
- Oklahoma
- Rhode Island
- Vermont
- Virginia
- Washington
It should also be noted that very few on this list reach the figures established by California for its minimum wage. In fact, the city led by Gavin Newsom has quite a difference with some of those who earn the minimum wage. But another clarification here is that it is not the state with the highest salary. The first place in the ranking is occupied by Washington, which currently has a floor of $15.74 per hour.
States with the lowest wages
Currently, there are five states that have not established a minimum wage of their own. This led to them maintaining the federal one, which is $7.25 per hour. These states are: Alabama, Louisiana, Mississippi, South Carolina and Tennessee.
If you want more information regarding the minimum wage in the different states, you can consult the website of the U.S. Department of Labor. In this digital space, you will find all the updated data regarding labor activity in the country. You will be able to clear all your doubts and also be aware of all the official announcements of the Government, as is the case of this increase in the minimum wage in California.
