If you’re clocking in at a minimum wage job this summer, you might notice your paycheck feels a little heavier. That’s because multiple states, cities, and counties across the U.S. are raising their minimum wage rates effective July 1, 2025—with some hikes adding up to hundreds of extra dollars a year for full-time workers.
This latest round of wage increases comes amid rising inflation, housing costs, and a continued push for fairer pay. While Congress hasn’t raised the federal minimum wage from $7.25 in over 15 years, many local governments are taking matters into their own hands—and for workers in these areas, the change can be immediate and impactful.
Which States Are Raising the Minimum Wage in July 2025?
Here are the major statewide changes:
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Alaska: Raises its minimum wage to $13.00 per hour, up from roughly $11.91. This marks one of the state’s largest jumps in recent years.
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District of Columbia: Moves to $17.95 per hour, a 45-cent increase tied to local inflation adjustments.
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Oregon: Adjusts based on region:
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Non-urban counties: $14.05
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Standard rate: $15.05
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Portland metro area: $16.30
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For Oregon, this tiered system reflects the different costs of living throughout the state—and gives urban workers a higher wage floor to match local expenses.
City and County-Level Wage Hikes You Should Know About
In addition to statewide boosts, several cities and counties are pushing wages even higher:
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Chicago, IL: Now at $16.60/hour, up 40 cents
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Montgomery County, MD: Hits $17.65/hour
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Los Angeles, CA: Increases to $17.87/hour
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Berkeley & San Francisco, CA: Now $19.18/hour
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Emeryville, CA: Leads the pack at $19.90/hour
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Washington State localities:
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Renton: $19.90
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Tukwila: $21.10
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Everett: $18.24
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These are some of the highest minimum wages in the nation, with several cities nearing or surpassing the $20/hour mark.
Who Benefits Most From the Wage Increases?
The biggest beneficiaries are often the workers who need help the most. According to the Economic Policy Institute:
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Over 58% of affected workers are women
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A large share are Black or Hispanic
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Many work in food service, retail, caregiving, or similar jobs where wages have historically lagged
For example, a full-time worker in Oregon moving from $14.20 to $15.05 would earn around $700 more per year. In Alaska, the change could mean up to $925 extra annually.
And with inflation pushing up the cost of everything from rent to groceries, that extra cash can make a real difference.
What You Should Do Now
If you’re an employee:
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Check your paystub in mid-July to confirm the new rate has been applied
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If you rely on tips, make sure your base wage plus tips adds up to the new minimum
If you’re an employer:
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Update your payroll systems
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Post new wage notices in breakrooms or common areas
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Make sure tipped and part-time staff are still meeting wage floor requirements
Bottom Line
Whether you’re in Alaska, Oregon, D.C., Chicago, or Los Angeles, this July 1 is bringing a raise for hundreds of thousands of workers. And while not every state is joining the movement yet, the tide is turning: more cities are stepping up to ensure workers get fair compensation.
