With a new year comes new opportunities for New Yorkers making the minimum wage.
Gov. Kathy Hochul announced Tuesday that the minimum wage will increase by 50 cents hourly in 2025, to $16.50 per hour in New York City, Westchester, and Long Island, while the rest of the state will see an increase to $15.50 per hour.
This wage adjustment is part of a historic multi-year agreement between Hochul and the State Legislature designed to address rising living costs by indexing the minimum wage to inflation starting in 2027.
“Putting money back in your pockets has been the focus of my first three Budgets, and that includes increasing the minimum wage for the lowest earners across the state,” Hochul said. “With rising costs of living, this increase will help to lighten the burdens of inflation for New Yorkers while providing businesses with the time needed to adjust.”
Labor organizations, including the New York State AFL-CIO, welcomed the announcement.
“The 2025 minimum wage increase is a much-needed boost for hardworking New Yorkers. We applaud Governor Hochul for raising and indexing the minimum wage, ensuring it will increase along with the cost of living,” said Mario Cilento, president of the NYS AFL-CIO labor union.
StateLabor Commissioner Roberta Reardon emphasized the importance of the increase in light of current economic challenges.
“In this current era of inflation and rising costs, every cent counts for all New Yorkers, especially workers who earn minimum wage,” Reardon said. “By gradually increasing wages for the lowest earners, we are ensuring businesses can adjust to the change while also helping more families make ends meet.”
‘Don’t insult us with 50 cents’
Even still, some local residents believe the increase may not be enough to support working families.
Tyrone Marsh, who has a salary job in education, fears the wage boost won’t be nearly what is required for many households to sustain themselves in the Big Apple.
“It is incredibly expensive living in this city and trying to pay bills. Oftentimes, I wonder how people are affording to live here and try to have a family,” Marsh told amNewYork Metro. “They should raise it a little bit more in order to have a better life in this city.”
Michelle Cevallos, who has lived in New York for 10 years, says wages are better now than when she first came to the city, but there’s still room for growth.
“Minimum wage is way better than it was in 2017. I would think $16.50 is enough if you are paying less than $1,000 in rent and living very, very modestly, but who can afford modest living in this modern age?” Cevallos told amNewYork Metro. “But if you’re going to raise the minimum wage, please don’t insult us with 50 cents.”
Legislators, including Assembly Member Harry Bronson, chair of the Labor Committee, support the change and consider it a step in the right direction.
“Our families and workers deserve a minimum wage that keeps pace with costs so they can afford life’s necessities,” Bronson said. “I am proud to have stood with my colleagues in the Legislature in the fight to raise the minimum wage and critically index it to inflation so working people will no longer continue to be priced out of the economy if costs rise.”
As part of a broader plan to assist low-income workers, the minimum wage will undergo additional increments of $0.50 in 2026, followed by annual increases aligned with inflation as determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Northeast Region. There is also an “off-ramp” provision that allows for adjustments based on certain economic conditions.
Employers seeking more information about the new wage structure can access resources, including an interactive Minimum Wage Lookup Tool, at the New York State Department of Labor’s website, dol.ny.gov/minimum-wage-0.
