Minimum Wage Increase in the United States: Updated Hourly Rates for December 2025

The U.S. minimum wage has seen its biggest shift in more than 15 years.

After a long freeze, the federal rate finally increased, bringing meaningful relief to millions of low-income workers who have struggled with rising costs of housing, food, and everyday essentials.

 

New Federal Minimum Wage: What Changed in 2025?

As of November 2025, the federal minimum wage rose from $7.25 to $9.50 per hour.

This is the first federal increase since 2009 and affects roughly 27 million workers nationwide.

For a full-time employee, this jump means over $2,000 more per year, a major boost after more than a decade without wage growth.

Read: Stimulus Payments in December 2025: Here’s Who Is Getting Checks

 

Minimum Wage Breakdown: Current Rates and 2030 Targets

Here’s a quick overview of the updated federal rates:

General Workers

• Previous: $7.25/hour

• Now: $9.50/hour

• 2030 Target: $15/hour

Tipped Workers

• Previous: $2.13/hour

• Now: $5.50/hour

• 2030 Target: TBD

Youth Training Wage

• Previous: $4.25/hour

• Now: $8.00/hour

• 2030 Target: $10/hour

 

What About Tipped Workers?

Tipped service workers saw one of the biggest changes.

Their base wage rose from $2.13 to $5.50 per hour.

Employers can still use tips to meet the federal minimum of $9.50/hour, but the higher base pay helps:

• Reduce income instability

• Create more predictable paychecks

• Offer better protection during slow seasons or low-tipping days

This adjustment is especially meaningful for workers in restaurants, hotels, and hospitality sectors.

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