Illinois Minimum Wage 2025 Increase

Published On: November 21st, 2024Categories: Payroll, Payroll Tax, Small Business

We are closing in on 2025, and with the new year, many changes will go into effect, including the next installment of Illinois minimum wage increases. Whether you are a business owner or an individual, knowing where you may see increases is important.

The Illinois minimum wage will increase from $14.00 to $15.00 per hour beginning January 1, 2025. This will be the sixth increase in the state’s minimum wage since 2019 when Governor JB Pritzker signed historic legislation establishing a schedule of increases culminating in a $15 per hour minimum wage in 2025.

Additionally, this scheduled increase impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. Effective January 1st, 2025, the tipped wage rate will increase to $9.00 per hour.

Below is a breakdown of Illinois’ scheduled minimum wage rate increases by year.

Contact your payroll provider prior to your first payroll of 2025 to advise them of increases to your employee’s wages to stay compliant.

For further information on these increases, please visit the Illinois Department of Labor website. Eccezion is here to guide you through these increases to ensure that you stay compliant. Please reach out to our payroll specialists at payroll@eccezion.com should you have any questions.

About the Author: Andrea Doerdelmann

Andrea Doerdelmann is every payroll client’s preferred Eccezion team member, or she’s at least their employees’ favorite– whether they know it or not. Why? She makes sure everyone gets paid. “Andrea is the lead team member of our payroll department,” firm partner Shelly Spata says. “She is great at following through with clients and resolving payroll issues. She is also excellent at adapting to various client accounting systems to get payroll done on the client’s system rather than ours.”