As the cost of living continues to rise, states across the U.S. are taking steps to ensure that workers earn a fair wage. Illinois is no exception. Following a recent minimum wage increase in 2024, the state is preparing for another hike in 2025 that aims to benefit millions of workers.
Current Minimum Wage in Illinois
This Article Includes
As of January 1, 2024, the standard minimum wage in Illinois was raised to $14 per hour for workers aged 18 and older. For younger workers under 18 who work less than 650 hours in a calendar year, the minimum wage stands at $12 per hour. Tipped workers, who rely on gratuities, currently earn $8.40 per hour, which is 60% of the state minimum wage, according to the Illinois Department of Labor.
Upcoming Changes for 2025
Starting January 1, 2025, Illinois will see another increase in its minimum wage. The new rates will be:
- $15 per hour for workers aged 18 and older
- $13 per hour for workers under 18 who work fewer than 650 hours
- An increase in the minimum wage for tipped workers from $8.40 to $9 per hour
This increase is part of a larger trend across the country, with Illinois being one of 30 states and the District of Columbia that have set minimum wages above the federal minimum of $7.25 per hour.
Illinois governor signs bill raising minimum wage to $15 https://t.co/zPRNxs0O3Q pic.twitter.com/d59v1wtWEn
— The Hill (@thehill) February 20, 2019
The Context of Minimum Wage Increases
Many states, including Illinois, have linked their minimum wage increases to the cost of living or inflation, helping workers keep pace with rising expenses. The legislation that established these increases was passed in 2019, reflecting a growing recognition of the need for higher wages to support workers and their families.
Chicago’s Minimum Wage Landscape
While the state of Illinois is raising its minimum wage, Chicago has its own distinct wage structure. As of July 2024, the minimum wage in Chicago is $16.20 per hour for employers with four or more workers, with a lower rate of $15 per hour for young workers. For tipped employees, the minimum wage is set at $11.02 for employers with four or more workers and $10.20 for young workers.
Future Adjustments in Chicago
The minimum wage in Chicago is subject to annual increases tied to the Consumer Price Index or capped at 2.5%, whichever is less. This means that the exact wage for 2025 will be confirmed next year, ensuring that the city’s wages remain competitive and reflective of living costs.
Conclusion
Illinois is taking significant steps to enhance the financial security of its workers with these upcoming minimum wage increases. As the state and city prepare for these changes, millions of workers stand to benefit from improved earnings that will help them meet the challenges of rising living expenses. With wages on the rise, both Illinois and Chicago demonstrate a commitment to creating a fairer working environment for all employees.