Community Corner

IL Minimum Wage Workers Will See Bump In Pay Starting Next Week

Illinois' minimum wage rate will move to $14 per hour beginning on Monday but workers in Chicago have to wait until July to see an increase.

ILLINOIS — Illinois residents who work for minimum wage will begin seeing a bump in pay beginning next week as the next phase of a state law that will increase the state's minimum rate to $15 per hour by 2025 takes effect.

The state’s minimum wage for workers 18 years and older will increase to $14 on Monday, an increase of $1 per hour, which is part of an incremental increase that was approved in a new state law that went into effect in 2019.

Since 2019, Illinois' minimum wage for workers at least 18 years of age has increased by $1 each year and will cap out at $15 per hour on Jan. 1, 2025. The minimum wage for workers under the age of 18 is currently $10.50 while tipped employees receive 60 percent of the minimum wage ($7.80 per hour) and $6.30 per hour for workers who are under 18.

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Workers under the age of 18 will be paid $12 an hour while the rate of pay for workers who earn tips will increase to $8.40 per hour beginning next week. In 2025, when the state’s is bumped by another $1 an hour, workers under the age of 18 who work less than 650 hours in a year will see their pay increased to $13 while tipped employees will receive $9.

In Chicago, the city’s rate of minimum wage increased in July on a tiered system based on the size of the company, meaning that workers in the city who receive that rate of pay won't see more on their paychecks for another six months.

Find out what's happening in Across Illinoisfor free with the latest updates from Patch.

Large businesses are considered those with at least 21 employees while smaller companies include anywhere from 4-20 workers. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5 percent, whichever is lower, since reaching $15 per hour in 2021, according to the city’s website.

As of July 1, the minimum wage in Chicago increased to $15.80 per hour for employers with 21 or more workers, and $15 per hour for employers with 4 to 20 workers.

Tipped workers have a minimum wage of $9 for employers with 4 to 20 workers and $9.48 for employers with 21 or more workers. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference, according to the city ordinance.

As of July 1, the minimum wage to be paid under city contracts or concessionaire agreements is $16.80 per hour, the ordinance says. When applying an allowance for gratuities to the wage of City concessionaire employees in positions that traditionally receive gratuities, the rate is $8.80 per hour.

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