The new minimum wage for all Texans, which will take effect this month, has finally been approved by the federal government. Since 2009, the federal minimum wage in the United States has remained constant at $7.25 per hour.
This 16-year freeze is the longest period without modification since the minimum wage was first implemented in 1938. As the cost of living continues to rise, many families are finding it impossible to meet their basic needs because of this outdated figure.
As a result, 30 states and the District of Columbia have approved laws raising the minimum wage above the federal level.
These states typically increase wages annually to account for inflation and living expenditures. Many workers have been disadvantaged by states like Texas that adhere to the federal baseline.
Due to increases in inflation, Texas will raise the minimum wage for its citizens.
Several Texas municipalities have taken action to increase salaries for their employees and, in some cases, those who have contracts with the local government, despite the state’s reliance on the federal minimum wage.
Austin, Dallas, Houston, Fort Worth, and San Antonio are setting the standard with significant salary increases by 2025, as explained below:
- Austin: In October 2024, the City Council raised the living wage for regular and temporary city employees to $21.63 per hour, which is more than three times the federal rate. This audacious action attempts to solve Austin’s sharply increasing cost of living.
- Houston: By increasing the minimum wage for county contract workers to $15 per hour, the Harris government commissioners decisively agreed to equal the wages of government employees.
- Dallas: The City of Dallas established a rule requiring the minimum wage for general service contracts to be modified once a year. The 2025 Living Wage is $3.81 higher than the 2024 Living Wage, at $22.05 per hour.
- Fort Worth: In October of last year, the city raised the minimum wage to $16.07 for both temporary and permanent workers. However, starting with payments on February 14, 2025, the minimum wage will increase to $18.00 per hour.
- San Antonio: Although there is no general rise in the minimum wage from the existing $18 per hour, city employees who have served for more than five years or have similar experience will have their pay boosted to a specific percentage of their pay range if they are not currently paid that amount.
The biggest cities in Texas are starting to compete with states like California, New York, and Washington, as well as the District of Columbia, that have minimum salaries ranging from $16 to $17 per hour, thanks to these hikes.
Medicaid Eligibility in Texas for 2025: What’s the Maximum Income to Qualify?
All employees in these locations, not just those who work for the city or under a contract with the local government, are subject to the minimum wage, nevertheless.
Which states will see the biggest rises in the minimum wage this year?
All US states have raised the minimum wage in recent years to provide individuals more money to keep up with inflation. The US Department of Labor recently confirmed that these will be this year’s highest minimum wages:
| State | Minimum Wage |
| Washington | $17.50 per hour |
| California | $16.50 per hour |
| Washington state | $16.66 per hour |
| Connecticut | $16.35 per hour |
| New York | $16.50 per hour |
| New Jersey | $15.49 per hour |
| Delaware, Illinois, Maryland, Massachusetts, and Rhode Island | $15.00 per hour |
Fourteen states pay the federal minimum wage of $7.25 because of the federal Fair Labor Standards Act, which requires all states to pay a minimum wage for jobs covered by it. Some charge more for businesses that meet certain requirements.
Georgia requires companies with six or more workers to pay $5.15 per hour, but Wyoming does not. There are no minimum wage regulations in Alabama, Mississippi, South Carolina, Louisiana, or Tennessee.
