How much will Ohio minimum wage increase in 2025?

How much will Ohio minimum wage increase in 2025?

How much will Ohio minimum wage increase in 2025?
(WKBN) — As part of a state constitutional amendment approved by Ohio voters nearly two decades ago, the state-wide minimum wage is set to rise with the new year to match inflation.

After Ohioans voted in support of Constitutional Amendment II 34A in 2006, the state minimum wage rate has increased annually every January 1 since 2007.

As of Jan. 1, 2025, Ohio’s minimum wage will rise to $10.70 per hour for non-tipped employees. Tipped employees will earn $5.35 per hour. The minimum wage will apply to employees of businesses with annual gross receipts of more than $394,000 per year.

The current 2024 minimum wage is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The 2024 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $385,000.

The state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12 months before September. The index increased by 2.4% from Sept. 1, 2023, to Aug. 31, 2024, accounting for the $0.25 increase in wages for non-tipped employees.

For employees at smaller companies with annual gross receipts of $394,000 or less per year after Jan. 1, 2025 — and for 14- and 15-year-olds — the state’s minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour, which requires an act of Congress and the President’s signature to change.

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