Minimum Wage Increases in New York: In January 2025, New York state raised the minimum wage in many parts of the state. This increase is part of a systematic plan that began in 2024.
In 2024, the minimum wage was raised from $15 to $16 per hour in the southern part of New York, and from $14.20 to $15 in the rest of the state. Starting in January 2025, the minimum wage will rise again. In areas like New York City, Westchester, and Long Island, the minimum wage will increase to $16.50 per hour. In other parts of the state, the minimum wage will rise to $15.50.
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Governor Kathy Hochul’s Promise
Governor Kathy Hochul and lawmakers agreed that the minimum wage would be tied to the consumer price index (CPI) starting in 2027. This means that in the future, the minimum wage will automatically adjust based on inflation. According to Department of Labour Governor Hochul said, “Putting money back in their pockets has been the goal of my first three budgets, and that includes raising the minimum wage for lower-income people across the state.” “With rising costs of living, this increase will help to lighten the burdens of inflation for New Yorkers while providing businesses with the time needed to adjust.”
Big start to the new year for working families: New York has implemented three new laws that will put money back in your pockets!
The minimum wage is higher, paid prenatal leave is required, and insulin copays are $0. pic.twitter.com/z0PYOEumJJ
— Governor Kathy Hochul (@GovKathyHochul) January 4, 2025
Impact on Workers and Businesses
The increase in minimum wage is seen as a way to help workers keep up with rising costs of living. However, not everyone is happy about the changes. Some workers in the southern part of the state feel the increase doesn’t go far enough. “It fell short by almost $4,” one worker said.
On the other hand, farmers in the northern part of the state think the increase is too high. They are concerned about rising costs and how the higher wages will affect their businesses. Some farmers worry about low overtime thresholds and increased costs due to the higher minimum wage.
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Minimum Wage Increases in New York: Future Plans
The minimum wage in New York State is set to increase further in the coming years. In 2026, the wage will rise by an additional $0.50. This will bring the minimum wage to $17 per hour in the southern part of the state and $16 per hour in the northern part.
After this increase, starting in 2027, the wage will rise annually according to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. This is the most accurate measure of inflation for the region and will help keep the minimum wage in line with the rising cost of living.
These changes are part of a bigger plan to improve wages in the state. The goal is to ease the burden of inflation for workers while giving businesses time to adjust.
