Summary of minimum wage increases under the Raise the Wage Act of 2021, and number of workers affected by the increases, 2021–2025
| Date | New minimum wage | Increase over previous minimum wage | New tipped minimum wage | Tipped minimum increase | Total estimated U.S. workforce (thousands) | Directly affected (thousands) | Indirectly affected (thousands) | Total affected (thousands) | Affected workers’ share of U.S. workforce |
|---|---|---|---|---|---|---|---|---|---|
| October 2021 | $9.50 | $2.25 | $4.95 | $2.82 | 148,172 | 3,279 | 4,996 | 8,275 | 5.6% |
| October 2022 | $11.00 | $1.50 | $6.95 | $2.00 | 149,020 | 6,591 | 7,075 | 13,666 | 9.2% |
| October 2023 | $12.50 | $1.50 | $8.95 | $2.00 | 149,893 | 13,296 | 8,653 | 21,950 | 14.6% |
| October 2024 | $14.00 | $1.50 | $10.95 | $2.00 | 150,791 | 18,670 | 10,190 | 28,860 | 19.1% |
| October 2025 | $15.00 | $1.00 | $12.95 | $2.00 | 151,716 | 22,055 | 10,126 | 32,181 | 21.2% |
Notes: Values reflect the results of the proposed changes in the federal minimum wage under the Raise the Wage Act of 2021. As of March 2021, the federal minimum wage is $7.25 an hour and the federal tipped minimum wage is $2.13 per hour. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate exceeds their existing hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Wage increase totals are cumulative of all preceding steps.
Source: Economic Policy Institute Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).