NY State Minimum Wage Increase: What NYC, Westchester, and Long Island Residents Can Expect
The new year means a new minimum wage increase for New Yorkers, beginning on January 1st. This upcoming wage increase is part of the historic agreement to increase New York’s minimum wage through 2026 and index to inflation beginning in 2027.
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On January 1st, 2025, New Yorkers earning minimum wage will receive a raise of $0.50 per hour, as announced by Governor Kathy Hochul. This adjustment will set the minimum wage at $16.50 per hour in New York City, Westchester County, and Long Island. In the rest of the state, the minimum wage will be increased to $15.50 per hour.
This change is part of a historic multiyear agreement reached between Governor Hochul and the New York State Legislature, which aims to index minimum wages to inflation. This initiative is designed to help low-income workers keep pace with rising living costs and provide financial stability.
Governor Hochul stated, “Putting money back in your pockets has been the focus of my first three Budgets, and that includes increasing minimum wage for the lowest earners across the state.” She continued, “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.”
The last increase in New York State took place on January 1st, 2024. At that time, the general minimum rose to $15.00 per hour for the remainder of the state (outside of New York City and Nassau, Suffolk, and Westchester counties) and to $16.00 per hour for large employers in New York City.
New York State Department of Labor Commissioner Roberta Reardon shared, “In this current era of inflation and rising costs, every cent counts for all New Yorkers, especially workers who earn minimum wage. By gradually increasing wages for the lowest earners, we are ensuring businesses can adjust to the change while also helping more families make ends meet. I want to thank Governor Hochul and the Legislature for working together to strengthen the paychecks of New Yorkers statewide.”
New York State is on track to implement annual wage increases to reach $17 per hour in New York City and its surrounding suburbs, while other regions within the state will see the minimum wage rise to $16 per hour by the year 2026. After reaching these amounts, any future adjustments to the minimum wage will be linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers.
According to the Economic Policy Institute, New York is one of 21 states that will implement increases to their minimum wage rates, directly benefiting over 9.2 million workers across the country. This collective raise is expected to result in an additional $5.7 billion in employee earnings. Alongside these state-level adjustments, 48 cities and counties have decided to raise their minimum wages even higher than their respective state mandates.
Most cities and counties that will implement these raises will be in California, Colorado, and Washington, where municipalities are taking steps to address the rising cost of living and ensure that workers receive fair compensation for their labor.
As of now, the states that will see increases in 2025 are Alaska, Arizona, California, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
Minimum wage earners in New York who find that the increase in the minimum wage is not reflected in their paychecks can file a wage complaint. This can be done either directly through the New York State Department of Labor’s website or by calling 833-910-4378.
