Texas Raises Minimum Wage for Citizens – Find Out How Much You’ll Make in These 4 Cities

The federal government has finally confirmed the new minimum wage for all residents in Texas that will become effective as of this month. In the United States, the federal minimum wage has not changed since 2009, staying at $7.25 per hour.

The longest duration without change since the minimum wage was originally instituted in 1938 is this 16-year freeze. This antiquated number has left many families finding it difficult to cover their basic demands as the cost of living keeps rising. 

In response, legislation that raises the minimum wage above the federal level has been passed in 30 states and the District of Columbia. These states usually make yearly wage adjustments to reflect living expenses and inflation. States that follow the federal baseline, like Texas, have put many workers at a disadvantage. 

Texas will raise the minimum wage for its residents due to inflation rises

Even though the state depends on the federal minimum wage, several Texas localities have taken steps to raise wages for their employees and, in certain situations, those who have contracts with the local government. With large pay increases for 2025, Austin, Dallas, Houston, Fort Worth, and San Antonio are setting the standard, as here detailed: 

• Austin: The living wage for regular and temporary city employees was increased by the City Council to $21.63 per hour in October 2024, over three times the federal rate. This bold move aims to address the rapidly rising cost of living in Austin.
• Houston: The Harris government commissioners overwhelmingly decided to match the pay of government employees by raising the minimum salary for county contract workers to $15 per hour.
• Dallas: The minimum pay for general service contracts must be adjusted annually, according to a policy put in place by the City of Dallas. The 2025 Living Wage is $22.05 per hour, which is $3.81 more than the 2024 Living Wage.
• Fort Worth: Last year in October, the city’s minimum wage for both permanent and temporary employees increased to $16.07. However, the minimum wage will rise to $18.00 per hour beginning with payments on February 14, 2025.
• San Antonio: City employees with more than five years of service or related experience will have their pay increased to a particular percentage of their pay range if they are not currently paid that amount, even though there is no general raise in the minimum wage from the current $18.

With these increases, Texas’ largest cities are beginning to compete with states that have minimum wages between $16 and $17 per hour, such as California, New York, and Washington, as well as the District of Columbia. However, the minimum salary applies to all workers in these places, not just those employed by the city or under contract with the local government. 

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Which will be the states with the highest minimum wage increases this year? 

In the last few years, all US states have increased the minimum salary so people can have more money to keep pace with inflation. According to recent confirmation from the US Department of Labor, these will be the highest minimum wages for this year:

• Washington: $17.50 per hour.
• California: $16.50/hr.
• Washington state: $16.66 per hour.
• Connecticut: $16.35.
• New York: $16.50/hour.
• New Jersey: $15.49 per hour.
• Delaware, Illinois, Maryland, Massachusetts, and Rhode Island: $15 per hour.

Due to the federal Fair Labor Standards Act, which mandates that all states pay a minimum wage for jobs covered by it, 14 states pay the federal minimum wage of $7.25. For companies that fulfill specific criteria, some charge more. While Wyoming does not compel businesses with six or more employees to pay $5.15 per hour, Georgia does. Tennessee, Louisiana, Mississippi, South Carolina, and Alabama all have no minimum wage laws.

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