Starting today, the minimum wage for workers in Chicago – including tipped workers – will go up as part up the city’s scheduled annual increase.
Here’s what you should know.
What’s Chicago’s new minimum wage?
Effective July 1, Chicago’s standard minimum wage will increase from $16.20 to $16.60 hourly. The minimum wage for subsidized youth employment programs and subsidized transitional employment programs will be $16.50.
Every July 1, Chicago’s minimum wage will increase according to the Consumer Price Index or 2.5%, whichever is lower, per the Minimum Wage Ordinance.
Which businesses have to pay minimum wage
The Chicago minimum wage applies to any employer with 4 or more employees.
Chicago’s new tipped wage
At the same time, the minimum wage for tipped workers, such as restaurant servers, bartenders, bussers and runners, will increase from $11.02 to $12.62 – the largest annual raise in city history, according to a press release by One Fair Wage.
What is One Fair Wage ordinance?
Chicago approved the One Fair Wage ordinance in 2023, a move that would phase out the city’s subminimum wage for tipped workers over a five-year period.
Under the ordinance, the tipped wage will continue to increase by 8% every year until it reaches Chicago’s standard hourly minimum wage on July 1, 2028.
Is Illinois’ minimum wage increasing?
No. Illinois’ statewide minimum wage increased from $14 to $15 per hour on January 1.
Federal minimum wage 2025
The federal minimum wage has remained at $7.25 since July 24, 2009, according to the U.S. Department of Labor.
This article originally appeared on Journal Star: Chicago increases minimum wage for standard, tipped workers. What’s new wage?
Reporting by Hannah Hudnall, USA TODAY NETWORK / Journal Star
USA TODAY Network via Reuters Connect
