As is the case in many places in the United States, the wage changes automatically from year to year due to legislation and changes related to inflation or the cost of living in the city in question. This is the case in New York, one of 30 states with regulations that provide for an automatic adjustment of the minimum wage as it changes from year to year. This change, which will be implemented in 2025, will put New York’s minimum wage well above the average U.S. federal minimum wage, which has not been raised since 2009. Below, find out the details and the new wage you could earn if you work in New York.
Wage increase for 2025 in New York City
One piece of information of great importance to New York workers is related to the minimum wage and what awaits them in 2025, which is fast approaching. It is critical to note that wages will vary depending on whether you reside in New York City or other parts of the state. While, for those working in Midtown, Westchester or Long Island – the most central area – the current minimum wage is $16 per hour, in the rest of the state it is still $15 per hour. This represents a large difference with respect to the U.S. federal minimum wage, which remains at $7.25 per hour. This contrast is explained by the high cost of living in New York, where it is much more difficult to cover daily expenses.
In 2025, the minimum wage in New York will increase, as it has in the past, by $0.5 per hour worked. Thus, workers in Central New York will earn $16.5 per hour, while those in the rest of the state will earn $15.5 per hour. This automatic adjustment will also apply in 2026, so the minimum wage that workers will earn in that year can already be predicted. However, even if inflation and the cost of living continue to rise, these factors will not influence wages until 2027, when the CPI-W (consumer price index for salaried and urban office workers) will be introduced. At that time, wage increases will be adjusted for inflation and other factors that increase the cost of living in the city.
The solution to low minimum wages
As New York Governor Kathy Hochul’s office has indicated, the $0.5 annual increase in the minimum wage will have a positive impact in 2025, but may not be enough in 2026. Therefore, the idea of linking the minimum wage to inflation rates is intended to maintain workers’ purchasing power and savings. This measure aims to balance the economy for lower-income people, preventing them from falling into vulnerable situations in New York City.
