Illinois minimum wage set to rise again in 2023 – NBC Chicago

Nearly 200 new laws on January 1, 2023 are expected to go into effect in Illinois, with several potentially impacting your wallet. One of these laws is an increase in the state minimum wage.

Effective January 1, 2023, the minimum wage in the state will increase from $12 per hour to $13 per hour.

For workers who regularly earn tips, the rate will increase to $7.80, however, the state says “these workers must still earn minimum wage after receiving tips or the employer is required to make up the difference “.

Workers under 18 who work less than 650 hours a year will also earn a minimum wage of $10.50 an hour starting Jan. 1.

The increase in the minimum wage is part of an annual increase that is expected to continue until 2025.

In 2019, Illinois Governor JB Pritzker signed into law legislation providing a one-year pathway to raise Illinois’ minimum wage rate to $15 per hour and $9 for low-cost workers. tip.

Since the signing of this law, there have been four increases in the minimum wage, the fifth being only a few days away.

In 2020, most residents saw two minimum wage increases — first to $9.25 in January, then to $10 in July.

On January 1, 2021, the increased minimum increased again – to $11 per hour.

And on January 1, 2022, the state minimum wage increased to what it is now: $12 an hour.

The rate will continue to increase on January 1 of each year until it reaches $15 per hour on January 1, 2025.

“Illinois workers deserve a minimum wage that keeps up with the rising cost of living,” Governor JB Pritzker said in a statement. “That’s why, in my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. Starting January 1, minimum wage workers will get a raise and businesses will continue to receive tax credits for providing their workforce with a living wage.

Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the current state rate.

In Cook County, the July 1, 2022 minimum wage increased from $13 to $13.35 for untipped workers and from $6.60 to $7.40 for tipped workers.

In Chicago, the July 1, 2022 minimum wage for untipped workers increased from $15 to $15.40 for large businesses that employ 21 or more workers, and $14.50 for small businesses. And for tipped workers, rates have gone up to $9.24 for large employers and $8.70 for small businesses.

According to a 2020 study by the Illinois Economic Policy Institute at the University of Illinois, more than 1.4 million adult hourly workers in Illinois earn less than $15 an hour.