The minimum wage is rising in many states, counties, and cities, giving many low-wage workers a little more flexibility. At least 68 jurisdictions—19 states and 49 local governments—will raise their minimum wage on January 1, 2026, according to the National Employment Law Project (NELP). That means a base pay of at least $15 per hour for a lot of people. Others will see an even higher increase, with hourly minimums reaching $17 or more, in some areas.
These numbers reflect the fact that the federal minimum wage hasn’t changed since 2009 and is still set at $7.25 per hour. Rent, food, and basic services have all increased in cost during that time. In a world where, as the NELP report states, “Policies increasing the minimum wage have been a lifeline for underpaid workers who have been the most impacted by a growing affordability crisis,” these state and local wage increases provide workers with a little more stability.
Where wages are going up—and by how much
There are some patterns, but the new increases look the same everywhere.
A good example is New Jersey, where starting on January 1, 2026, long-term care employees will be paid $18.92 per hour. The minimum wage will increase to $17.00 per hour in some parts of New York City, Long Island, and Westchester on the East Coast. Which is a pretty big change in an area with extremely high living expenses.
Certain Californian communities on the West Coast are also increasing salaries. While the minimum wage will increase to $16.90 per hour statewide, the amount in some cities will depend on the size of the employer.
According to NELP, many increases are the result of ballot measures that were directly approved by voters, new laws passed by state legislatures, or inflation-indexed raises. Which basically means that over the past couple of years, people have been organizing, voting, and advocating for these changes.
Why these increases matter for workers
Since 2009, the federal minimum wage of $7.25 per hour stays the same. But prices have increased during that time. People at the bottom of the pay scale now find it more difficult to keep up with payments because of rising living expenses and higher inflation. Employees who make nearly the minimum wage are often forced to make difficult decisions about which bills to pay and which to skip.
You might be able to pay your rent, buy groceries, or set aside some money for emergencies with just a few extra dollars per hour. According to NELP: “Policies increasing the minimum wage have been a lifeline for underpaid workers who have been the most impacted by a growing affordability crisis.”
In an interview with CBS News, NELP researcher Tsedeye Gebreselassie highlighted the gap between different regions of the United States. “The contrast between states and cities that are raising wages every year and those that are stuck at $7.25 is really jarring,” she said, adding that “on the one hand, the lack of affordability is about things costing too much, but on the other hand, it means people are not earning enough money to buy things.”
Looking ahead for a step, not the finish line
Millions of workers will benefit greatly from the wage increases that will go into effect on January 1, 2026, but they are not the only solution to the financial problem.
The wide gap between regions that consistently raise salaries and those that continue to pay $7.25 highlights how unfair the system is. Some employees receive a welcome raise in the new year, while others experience no change at all.
However, each increase represents decisions made by communities, legislators, and voters who believe low-wage workers should be paid more. Will the federal minimum, which has been set at 2009, eventually change as well?