Bussiness

How much will minimum wage in New York go up in January?

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3 days ago

January 2, 2025

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How much will minimum wage in New York go up in January?

New York’s minimum wage gets a 50-cent bump in January, to $16.50 in Westchester, New York City and Long Island and $15.50 in the rest of the state.

This will be the first of two 50-cent increases that will bring the minimum wage to $17 downstate and $16 farther north by 2026.

The three-year rollout of minimum wage hikes began last year when the rate increased to $16 downstate (from $15) and $15 (from $14.20) elsewhere.

Starting in 2027, the wage will be linked to the Consumer Price Index as part of a compromise deal the Hochul administration reached with state lawmakers during budget negotiations last year.

“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,” Gov. Kathy Hochul said. “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.”

Dobbs Ferry business owner supports the increase

Upstate farmers pushed for an increase to $15 by 2027, while downstate lawmakers and organized labor sought a $21.25 wage.

New York joins 20 other states that will increase their minimum wage on Jan. 1, 2025. Fifteen states have a minimum wage of $15 or higher or have plans to get there, according to Business for a Fair Minimum Wage.

The group represents business owners across the country who support raising the minimum wage to increase worker productivity and retention.

“The walkable downtowns and vibrant communities New Yorkers want are made up of small, independent businesses like mine,” said Jessica Galen, the owner of Bloomy Cheese & Provisions in Dobbs Ferry. “Our businesses are stronger when our employees and folks who work locally are making enough to make ends meet. The minimum wage increase will recirculate back into the economy through spending at the main street shops that make up the fabric of our communities.”

Thomas C. Zambito covers energy, transportation and economic growth for the USA Today Network’s New York State team. He’s won dozens of state and national writing awards from the Associated Press, Investigative Reporters and Editors, the Deadline Club and others during a decades-long career that’s included stops at the New York Daily News, The Star-Ledger of Newark and The Record of Hackensack. He can be reached at tzambito@lohud.com.