Here’s How Much Minimum Wage Will Go Up In MI On Jan. 1

MICHIGAN — Minimum wage workers in Michigan are among about 9.2 million nationwide who will get a pay bump in 2025.

The pay raises taking effect Jan. 1 will increase worker pay by about $5.7 billion in the 21 states that are boosting the minimum wage, according to an analysis from the Economic Policy Institute, a nonprofit think tank that analyzes the economic effect of policies on primarily low- and middle-income families.

In Michigan, the minimum wage will increase in 2025 to $10.56 an hour, up from $10.33 an hour in 2024. The tipped minimum wage increases to $4.01 from $3.93 an hour. Minimum wage will then jump again on Feb. 21 to $12.48 an hour and the tipped wage to $5.99.

That additional increase is because the Michigan Supreme Court reinstated the Wage Act, which was originally approved to appear on the ballot in 2018. But before it could reach voters, Republican-led lawmakers adopted it and later watered-down the proposal, violating the state's constitution.

The raises will increase 2025 pay for minimum wage workers in Michigan by about $43,093,000 — or an average of $201 a year.

About 5 percent of the workforce and about 214,700 Michiganders are directly or indirectly affected by the minimum wage hikes. About 130,800 children — 7.3 percent of all children in Michigan — live in households where a minimum wage worker lives.

Nationwide, more than a quarter (25.7 percent) of workers getting a minimum wage pay increase are parents, and more than 5.8 million children live in households where an individual will receive a minimum wage hike, the analysis said.

One in five (20.4 percent) of affected workers are in families with incomes below the poverty line, and nearly half (48.5 percent ) have family incomes below twice the poverty line.

Teenagers are often disproportionately likely to become minimum wage workers, the analysis said, but about 88 percent of those getting raises are adults. Among them, about half are full-time workers.

Of all adult workers getting a minimum wage bump in 2025, 41.4 percent have completed at least some education beyond a high school degree.

In addition to Michigan, others among the 21 raising the minimum wage in 2025 are Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Virginia, Vermont and Washington.

In addition, about 48 cities and counties, mostly in California, Colorado and Washington, are raising wages above their state minimum wage floors.

Most minimum wage hikes taking effect Jan. 1 are a result of state laws that tie minimum wage increases to inflation. The raises are automatic in 13 of the states and affect about 56.2 percent of workers getting raises.