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Nine Million Workers Are Getting a Raise on January 1. Here’s Where.
As the clock strikes midnight on December 31st and welcomes the new year, over nine million workers across the United States will be treated to a welcome surprise – a pay hike. According to recent reports, 21 states are set to increase their minimum wage rates as of January 1, 2025.
These increases are largely attributed to state laws that index the minimum wage to inflation, with an additional six states passing legislation to boost wages and two ballot measures driving further changes. The resulting pay hikes will see a significant number of low-wage earners receiving a raise in the coming year.
The Economic Policy Institute (EPI) estimates that nearly one-fifth (20%) of those impacted by these increases reside below the poverty line, with almost half (49%) having family incomes below twice the poverty line. Furthermore, it is highlighted that the federal minimum wage has remained stagnant at $7.25 an hour since 2009, a figure that has lost approximately 30% of its purchasing power due to inflation.
A notable increase will take place in Ohio, where the hourly rate is set to rise from $10.45 to $10.70 due to an inflation adjustment. It is also worth mentioning that Oklahoma voters are scheduled to vote on gradually increasing the state’s base hourly wage to at least $15 an hour by June 2026.
In a few states, workers can expect significant increases. For instance, California will see its minimum rate climb from an undisclosed figure to $16.50 per hour due to inflation adjustments. Similarly, New York City, Long Island and Westchester residents will also see their hourly base increase to $16.50 as of January.
Additionally, it’s worth noting that nearly a third of workers reside in states where the hourly base rate has been increased or is set to be increased, while another 47% live in areas where these increases are not applicable.
Other notable pay hikes will take place in Arizona, Colorado, Connecticut, Delaware, Illinois, Michigan, Minnesota, Montana, Nebraska, New Jersey, and Rhode Island.
Source: www.cbsnews.com
