Minimum Wage in Illinois Set to Increase in 2023

Starting Jan. 1, 2023, minimum wage in the state will rise from $12 an hour to $13 an hour

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The minimum wage in Illinois will be going up in the new year.

Starting Jan. 1, 2023, minimum wage in the state will rise from $12 an hour to $13 an hour.

For workers who regularly earn tips, the rate will increase to $7.80, however, the state says "these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference."

Workers under 18 who work fewer than 650 hours a year will also earn a minimum wage of $10.50 per hour beginning Jan. 1.

The minimum wage increase is part of an annual rise set to continue through 2025.

In 2019, Illinois Gov. J.B. Pritzker signed legislation into law providing a years-long path to increase Illinois' minimum wage rate to $15 per hour and $9 for tipped workers.

Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away.

During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July.

On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour.

And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour.

The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025.

“Illinois workers deserve a minimum wage that keeps up with the rising costs of living,” Gov. J.B. Pritzker said in a statement. “That’s why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. Starting January 1st, minimum wage workers will get a raise and businesses will continue receiving tax credits for providing their workforce with a living wage.”

Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate.

In Cook County, the minimum wage on July 1, 2022 rose from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers.

In Chicago, the minimum wage on July 1, 2022 for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for smaller businesses. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses.

According to a study by the Illinois Economic Policy Institute at the University of Illinois in 2020, more than 1.4 million adult hourly workers in Illinois make less than $15 per hour.

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