U.S. Minimum Wage Update: New Rates for December 2025
- Author: Alex O'Connell
- Posted: 2025-12-03
The minimum wage in the United States is finally moving again after more than a decade of being stuck at the same number.
With inflation pushing up the cost of groceries, rent, and transportation, the recent wage increase is intended to give workers some much-needed breathing room.
How Much Is the New Federal Minimum Wage?
Beginning November 2025, the federal minimum wage officially increased from $7.25 to $9.50 per hour.
This is the first federal raise since 2009 and impacts around 27 million workers.
For someone working full-time, that’s roughly $2,000 more per year, making it a meaningful change after years of stagnation.
New Wage Levels at a Glance
Here’s a clear snapshot of the updated wage structure:
General Workforce
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Before: $7.25/hour
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Now: $9.50/hour
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Goal for 2030: $15/hour
Tipped Employees
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Before: $2.13/hour
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Now: $5.50/hour
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2030 Target: TBD
Youth Training Wage
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Before: $4.25/hour
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Now: $8.00/hour
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2030 Target: $10/hour
Why the Tipped Wage Increase Matters
Workers who rely on tips—servers, bartenders, hotel staff—saw one of the biggest jumps.
Their base pay rose to $5.50 per hour, even though tips will still be used to reach the full $9.50 minimum.
The higher base wage is designed to improve income stability and reduce dependence on unpredictable daily tips. It also helps protect workers during slow shifts, bad weather, or off-season months when tips are lower.
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