Pennsylvania’s Minimum Wage Set at $7.25 in 2025, Major Hike Pending

Key Takeaways

• Pennsylvania House Bill 1549 proposes county-based minimum wage hikes starting January 1, 2026, up to $15 per hour.
• Tipped workers will earn 60% of the regular county minimum wage beginning 2026, improving base pay stability.
• From 2029, minimum wages annually adjust by Consumer Price Index to match inflation across all Pennsylvania counties.

As of July 2025, the minimum wage in Pennsylvania remains at $7.25 per hour, a rate that has not changed since 2009. This matches the federal minimum wage and applies across the entire state, with no differences between counties. For workers who earn tips, the base wage is still $2.83 per hour, as long as their tips bring their total pay up to at least the state minimum wage. However, this long-standing situation is about to change in a big way. On June 11, 2025, the Pennsylvania House of Representatives passed House Bill 1549, which sets out a plan to raise the minimum wage in a new, county-based way starting January 1, 2026. The bill is now waiting for the Senate to vote and for the governor’s signature, both of which are expected soon.

Let’s break down what this means for workers, employers, and anyone interested in the future of wages in Pennsylvania.

What’s Changing and Why Now?

For more than 15 years, Pennsylvania’s minimum wage has stayed at $7.25 per hour. During this time, many neighboring states have raised their minimum wages, some to over $15 per hour. This has put pressure on Pennsylvania to catch up, especially as the cost of living has gone up and more people struggle to afford basic needs.

House Bill 1549 is the answer lawmakers have come up with. The bill introduces a tiered system that sets different minimum wages for different counties, based on population and local economic conditions. This approach is designed to balance the needs of workers with the realities faced by businesses in different parts of the state.

How Will the New Minimum Wage Work?

If House Bill 1549 becomes law, the changes will start on January 1, 2026. Here’s how the new system will work:

Philadelphia County

• Minimum wage jumps straight to $15 per hour starting January 1, 2026.
• This is the highest starting wage in the state and reflects the higher cost of living in Philadelphia.

16 Most Populous Counties Plus 3 Smaller Counties

These counties include Allegheny, Montgomery, Bucks, Delaware, Lancaster, Chester, York, Berks, Lehigh, Westmoreland, Luzerne, Northampton, Dauphin, Cumberland, Erie, Lackawanna, Centre, Monroe, and Pike.

• $12 per hour starting January 1, 2026
• $13 per hour starting January 1, 2027
• $15 per hour starting January 1, 2028

This gradual increase gives businesses time to adjust while still moving toward a $15 minimum wage.

Remaining Counties

All other counties in Pennsylvania will see a slower increase:

• $10 per hour starting January 1, 2026
• Increase by $1 each year until reaching $12 per hour in 2028

After 2028, these counties will also see their minimum wage adjusted every year based on inflation.

What About Tipped Workers?

Right now, tipped workers in Pennsylvania earn a base wage of $2.83 per hour. Under the new law, this will change. Starting in 2026, the tipped minimum wage will be 60% of the regular minimum wage for each county. This means tipped workers in Philadelphia will earn at least $9 per hour (60% of $15) before tips, and workers in other counties will see their base wage rise as well.

Employers will need to make sure that tips plus the new, higher base wage add up to at least the county’s minimum wage. If not, the employer will have to make up the difference.

Annual Cost-of-Living Adjustments

Beginning in 2029, all counties will have their minimum wages adjusted every year based on the Consumer Price Index (CPI). This is a measure of inflation that tracks how much prices go up for things like food, housing, and transportation. By tying the minimum wage to the CPI, the law aims to make sure wages keep up with the real cost of living.

Why a Tiered, County-Based System?

The tiered approach in House Bill 1549 is a compromise. Some lawmakers and business groups worried that a sudden, statewide jump to $15 per hour could hurt small businesses in rural areas where the cost of living is lower. By allowing different counties to move at different speeds, the bill tries to help workers in high-cost areas right away, while giving other areas more time to adjust.

This strategy also helped the bill win support from both Democrats and some Republicans, making it more likely to become law.

How Does Pennsylvania Compare to Neighboring States?

Pennsylvania’s minimum wage has lagged behind its neighbors for years. For example:

• New Jersey: $15.13 per hour (2024)
• New York: $15.00 per hour in many areas (2024)
• Maryland: $15.00 per hour (2024)
• Delaware: $13.25 per hour (2024)
• Ohio: $10.45 per hour (2024)
• West Virginia: $8.75 per hour (2024)

With House Bill 1549, Pennsylvania will finally start to catch up, especially in its largest counties.

Public Support and Political Momentum

Surveys show that more than 70% of Pennsylvanians support raising the minimum wage to $15 per hour. Many people believe this will help working families pay for rent, groceries, and other essentials. The Pennsylvania House Democratic Caucus has called the bill a “fairness and economic boost measure” for low-wage workers.

The bill’s passage in the House shows strong momentum, and the Senate is expected to act soon. Some Republican lawmakers have said they are open to the tiered approach, which could help the bill become law.

What Does This Mean for Employers?

Employers across Pennsylvania will need to prepare for these changes. Here’s what they should do:

• Update payroll systems to reflect new minimum wage rates for each county.
• Review employment agreements and make sure all workers are paid at least the new minimum wage.
• Adjust budgets to account for higher labor costs, especially in counties with the biggest increases.
• Train managers and payroll staff on the new rules, especially for tipped employees.
• Consult legal counsel to ensure full compliance with the new law.

Employers who fail to pay the correct minimum wage could face penalties and lawsuits.

What About Workers?

For workers, especially those earning minimum wage or working for tips, these changes will mean more money in their pockets. This could help many families afford basic needs and reduce poverty in the state.

Tipped workers, such as servers and bartenders, will see their base pay rise, making their income more stable even if tips are low on some days.

Summary Table: Proposed Minimum Wage Increases (Pending Enactment)

Key Points for Immigrants and International Workers

Many immigrants and international workers in Pennsylvania work in industries like restaurants, hotels, and agriculture, where minimum wage laws are especially important. Here’s what these changes mean for them:

• Higher base pay: Immigrants working in low-wage jobs will see their pay go up, especially in larger counties.
• More stable income for tipped workers: Many immigrants work as servers or in hospitality. The new law will give them a higher base wage, making their income less dependent on tips.
• Legal protections: All workers, regardless of immigration status, are covered by minimum wage laws. Employers cannot pay less than the legal minimum wage.
• Need for information: Immigrants may face language barriers or may not know their rights. Community organizations and legal aid groups can help explain the new rules.

Practical Steps for Employers and Workers

Employers should:

• Check which county their business is in and what the new minimum wage will be.
• Make sure all workers, including part-time and temporary staff, are paid at least the new minimum wage.
• For tipped workers, calculate the new base wage (60% of the county minimum wage) and make sure total pay meets or exceeds the county minimum wage.
• Keep clear records of hours worked and wages paid.

Workers should:

• Know their rights under the new law.
• Check their pay stubs to make sure they are getting at least the new minimum wage.
• Speak up if they are not being paid correctly. They can contact the Pennsylvania Department of Labor & Industry for help.

What Happens Next?

If the Senate approves House Bill 1549 and the governor signs it, the new minimum wage rates will start on January 1, 2026. Employers and workers should watch for updates from the Pennsylvania Department of Labor & Industry, which will provide official guidance and answer questions.

From 2029 onward, the minimum wage in every county will go up each year based on inflation, helping to keep up with rising prices.

Where to Find More Information

For the latest updates on the minimum wage in Pennsylvania, including official wage rates and compliance information, visit the Pennsylvania Department of Labor & Industry Minimum Wage page. This site will have the most current information as the new law takes effect.

Employers and workers can also check the Pennsylvania General Assembly website for the status of House Bill 1549 and other legislative updates.

Looking Ahead: What Does This Mean for Pennsylvania?

If House Bill 1549 becomes law, it will mark the first time Pennsylvania has raised its minimum wage since 2009. This is a major shift after 17 years of no change. The new, higher minimum wage will help many workers earn more, especially in places where the cost of living is high. It will also help Pennsylvania keep up with neighboring states and make it easier for families to afford basic needs.

Employers will face higher labor costs, but the gradual, county-based approach gives them time to adjust. The annual cost-of-living increases starting in 2029 will help make sure wages don’t fall behind again.

As reported by VisaVerge.com, these changes reflect a growing national trend toward higher minimum wages and more local control over wage laws. Pennsylvania’s move could inspire other states to consider similar approaches.

Action Steps for Readers

• Employers: Start planning now for the new minimum wage rates. Review your payroll, update your systems, and train your staff.
• Workers: Learn your rights and check your pay. If you have questions, reach out to the Pennsylvania Department of Labor & Industry.
• Community groups: Share information about the new law, especially with immigrants and workers who may not speak English as their first language.

By staying informed and prepared, everyone can benefit from these important changes to Pennsylvania’s minimum wage laws.

Conclusion

The passage of House Bill 1549 marks a turning point for workers and employers in Pennsylvania. After years of debate and delay, the state is set to raise its minimum wage for the first time since 2009, with a plan that takes local differences into account. Whether you’re an employer, a worker, or someone interested in economic policy, it’s important to understand how these changes will affect you. For more details and updates, always check official sources like the Pennsylvania Department of Labor & Industry.

This new law, once enacted, will help ensure that Pennsylvania’s workers are paid fairly and that wages keep up with the cost of living, making the state a better place to live and work for everyone.

Learn Today

Minimum Wage → The lowest hourly pay rate legally allowed for most workers in a specific area or state.
House Bill 1549 → Legislation proposing a tiered, county-based minimum wage increase in Pennsylvania starting in 2026.
Consumer Price Index (CPI) → An inflation measure tracking changes in prices of common goods and services over time.
Tipped Workers → Employees earning a low base wage who receive additional income from customer gratuities or tips.
Tiered System → A wage model setting different minimum wages based on county population and local economics.

This Article in a Nutshell

Pennsylvania plans a major minimum wage increase from 2026, introducing tiered county rates up to $15 per hour. Tipped workers gain higher base pay. Annual inflation adjustments start in 2029 to keep wages current. This bill aims to support workers fairly across varying local economies statewide.
— By VisaVerge.com