Minimum Wage in NYS Goes Up January 1

Beginning January 1, New York’s Minimum Wage Will Increase to $16-Per-Hour in New York City, Long Island, and Westchester County and $15-Per Hour in the Rest of the State.

Minimum Wage for Home Care Aides Will Also Increase to $18.55-Per-Hour in New York City, Long Island, and Westchester County and $17.55-Per-Hour in the Rest of the State.

“New York’s historic minimum wage increase will help to ensure that New Yorkers can continue to keep pace with rising costs,” Governor Kathy Hochul said. “Starting January 1, minimum wage workers who do not see the increase reflected in their paychecks are urged to file a complaint with the Department of Labor to make sure that they get the wages they are owed.”

New York State Department of Labor Commissioner Roberta Reardon said, “The elevation of the minimum wage serves as lifeline for New Yorkers struggling to make ends meet as costs rise. Steady, multi-year changes allow businesses time to adjust while providing low-wage workers the ability to better support themselves and their families.”

The minimum wage will also increase by $0.50 in 2025 and 2026. In 2027, the minimum wage will increase annually at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region – the best regional measure of inflation. An “off-ramp” is available in the event of certain economic or budget conditions.

The minimum wage increases for the next three years are shown below:

Indexing the minimum wage to inflation will help to maintain the purchasing power of workers’ wages from year to year. Increasing the minimum wage overall overwhelmingly benefits low-income workers, particularly women and people of color who comprise a disproportionate share of minimum wage workers.

Eighteen other states either currently tie their minimum wage to inflation or some other economic formula or are slated to do so, including three states which have minimum wages at or above $15 in 2023. Economic research shows that raising the minimum wage can lead to reductions in poverty, reduced social assistance spending, stimulative spending, improved worker productivity, and other benefits.