As we approach the new year, Minnesota workers will see an increase in the state’s minimum wage, effective January 1, 2025. This adjustment comes as part of the state’s annual inflation-based adjustments, ensuring that wages keep up with the cost of living.
New Minimum Wage Rates for 2025
Starting on January 1, 2025, Minnesota’s minimum wage for all employers will rise to $11.13 per hour. This applies to all workers, including those working for large employers, small employers, youth workers, and J-1 visa holders.
In addition, the hourly wage for employees under the age of 20 will increase with the 90-day training wage—currently set at $8.85 an hour—bumping up to $9.08 an hour.
Annual Salary Adjustments
For workers earning the new minimum hourly wage and working a 40-hour week, annual wages will increase accordingly:
- For large employers: Annual wages will rise from $22,568 in 2024 to $23,150 in 2025.
- For small employers: Annual wages will increase from $18,408 in 2024 to $23,150 in 2025.
Impacts in Minneapolis and St. Paul
While the state minimum wage is increasing, Minneapolis and St. Paul have their own minimum wage ordinances, which require higher wages for work performed in these cities. Here’s what the new rates will look like:
- Minneapolis: The minimum wage for large employers and small employers will both rise to $15.97 on January 1, 2025.
- St. Paul: Similarly, the minimum wage for large employers and small employers will also increase to $15.97 in the new year.
These increases are in response to inflation and the cost of living in these major urban areas.
Changes to Minnesota’s Minimum Wage Law
Starting in 2025, a significant change will be made to Minnesota’s minimum wage law. The law will eliminate reduced minimum wage rates for certain categories of workers, including small employers (with annual gross revenues under $500,000), youth under age 18, and J-1 visa workers. This revision ensures that all workers, regardless of the size of their employer or age, will earn at least the state’s standard minimum wage.
Minnesota’s 90-day training wage for workers under age 20 will remain in place, but the rate will be adjusted to $9.08 an hour, reflecting a 2.6% increase.
What Employers Need to Know
Employers are required to notify their employees of any changes to the minimum wage rate. A written notice must be provided to each employee before the changes take effect. This includes notifying workers of the increased pay rate for 2025.
Additionally, employers must post the updated minimum-wage notice in an area where employees can easily see it. The new poster will be available for download later this fall.
Looking Ahead to 2025
These minimum wage increases are part of Minnesota’s ongoing efforts to help workers keep up with inflation and improve their ability to provide for themselves and their families. As Commissioner Nicole Blissenbach of the Minnesota Department of Labor and Industry explained, “The changes will also help minimum-wage workers keep up with inflation to better provide for themselves and their families.”
Minnesota’s minimum wage rates will continue to be adjusted annually to ensure workers are paid fairly for their labor in an ever-changing economy.
For more information, employers and employees can visit the Minnesota Department of Labor and Industry website.