Arizona’s minimum wage set for another increase in 2025
Sep 13, 2024, 3:00 PM
Arizona restaurant workers, and others paid minimum wage, will be getting a pay bump in January 2025 thanks to the latest inflation report. (Melissa Key Photo)
(Melissa Key Photo)
A report issued Wednesday by the U.S. government has set the stage to raise Arizona’s minimum wage starting in the new year.
Following the release of the latest Consumer Price Index report from the U.S. Bureau of Labor Statistics, employers in Arizona will have to pay workers at least $14.70 an hour starting Jan. 1, 2025. Currently, the minimum wage is $14.35 an hour.
The 35-cent minimum wage increase is directly tied to the latest CPI report, which showed an 2.5% increase in inflation from August 2023 to August 2024.
In 2016, Arizona voters approved Proposition 206, which raised the minimum wage from $8.05 an hour to $10 and increased it in annual increments to $12 in 2020. Prop 206 then required the minimum wage to be adjusted annually for inflation based off August CPI numbers. The law requires the increased minimum wage be rounded to the nearest five cents.
While it will be the ninth year in a row at Arizona’s minimum wage increased, the jump in 2025 is substantially less than what happened in previous years when inflation numbers were significantly higher.
This story is posted in partnership with Phoenix Business Journal. Click to read the full story.
