Minimum Wage Hike Set for July 2025 in Alaska, Oregon, Washington D.C., and Other U.S. Cities

Starting July 1, 2025, over 800,000 workers in Alaska, Oregon, Washington, D.C., and 12 cities or counties in California, Illinois, and Maryland will see their minimum wage increase, according to the Economic Policy Institute (EPI). In **Alaska**, the minimum wage will rise by $1.09 to $13 per hour, following a 2024 ballot initiative. This will benefit about 19,400 workers (6.3% of the workforce), with an average annual pay increase of $925. In **Washington, D.C.**, the minimum wage will increase by 45 cents to $17.95 per hour, impacting 62,200 workers (7.5% of the workforce). In **Oregon**, the minimum wage will vary by region: $16.30 per hour in the Portland metro area (up from $15.95), $14.05 in nonurban counties (up from $13.70), and $15.05 elsewhere in the state. These increases will add over $397 million to workers’ incomes. Other areas, including Los Angeles ($17.87/hour), Chicago ($16.60/hour), and Montgomery County, Maryland ($17.65/hour for large employers), will also see minimum wage hikes. In Chicago, the tipped minimum wage will rise from $11.02 to $12.62 per hour, part of a plan to phase out the lower tipped wage by 2028. The raises aim to address rising living costs, though in Alaska, the hospitality industry has raised concerns about the lack of a tip credit, requiring employers to pay the full minimum wage regardless of tips earned.