Texas Minimum Wage Hike: How Much Workers Make This Year after Increase

Race Day Live – Texas increases the minimum wage for all its residents.

The federal government has finally certified the new minimum wage for all Texas citizens, which will take effect this month. In the United States, the federal minimum wage has remained unchanged since 2009, at $7.25 per hour. This 16-year freeze represents the longest period of no change since the minimum wage was established in 1938. This archaic statistic has made it impossible for many families to meet their basic needs as the cost of living rises.

In response, 30 states and the District of Columbia have passed laws to raise the minimum wage above the federal level. These states typically increase wages once a year to account for rising living costs and inflation. States that follow the federal baseline, such as Texas, have disadvantaged many workers.

Minimum Wage Increase

Even though the state is reliant on the federal minimum wage, numerous Texas municipalities have taken efforts to raise salaries for their employees and, in some cases, those having contracts with the local government. With significant wage gains for 2025, Austin, Dallas, Houston, Fort Worth, and San Antonio are setting the standard, as indicated below:

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• Austin: The City Council boosted the living wage for permanent and temporary city employees to $21.63 per hour in October 2024, more than double the federal amount. This daring measure tries to alleviate Austin’s fast-rising cost of living.
• Houston: Harris County commissioners voted unanimously to equal the salaries of government employees by boosting the minimum wage for county contract workers to $15 an hour.

• Dallas: The minimum wage for general service contracts must be modified annually, according to a policy implemented by the City of Dallas. The 2025 Living Wage is $22.05 per hour, $3.81 higher than the 2024 Living Wage.
• Fort Worth: In October of last year, the city raised the minimum wage for both permanent and temporary employees to $16.07. However, the minimum wage will increase to $18.00 per hour on February 14, 2025.
• San Antonio: City employees with more than five years of service or relevant experience will have their pay boosted to a specific percentage of their pay range if they are not already paid that amount, despite the fact that the minimum wage will not be raised from the current $18.

With these hikes, Texas’ largest cities are beginning to compete with states with minimum wages ranging from $16 to $17 per hour, including California, New York, Washington, and the District of Columbia. However, the minimum wage applies to all workers in these locations, not just those employed by the city or on contract with the local government.

Which states will see the largest minimum wage rises this year?

In recent years, all US states have raised the minimum wage so that people have more money to keep up with inflation. According to recent confirmation from the US Department of Labor, the following will be the highest minimum salaries for this year:

• California: $16.50 per hour.
• Washington pays $16.66 per hour.
• Connecticut pays $16.35.
• New York: $16.50 per hour.
• New Jerseypays $15.49 per hour.
• Delaware, Illinois, Maryland, Massachusetts, and Rhode Island pay $15 an hour.

The federal Fair Labor Standards Act requires all states to pay a minimum wage for jobs covered by it, and 14 states currently pay the federal minimum wage of $7.25. Some companies charge more if they meet certain criteria. Wyoming does not require enterprises with six or more employees to pay $5.15 per hour; nonetheless, Georgia does. Tennessee, Louisiana, Mississippi, South Carolina, and Alabama all lack minimum wage regulations.

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