Key Takeaways
• Virginia’s minimum wage rises to $12.41 per hour on January 1, 2025, a 3.4% CPI-based increase.
• Tipped workers keep $2.13 base wage but must earn at least $12.41 including tips.
• Next raise planned for 2026 or 2027, targeting $15 per hour with annual CPI adjustments.
As of January 1, 2025, the minimum wage in Virginia stands at $12.41 per hour, marking a new chapter for workers and employers across the state. This change, effective at the start of the year, reflects a 3.4% increase from the previous rate of $12.00 per hour in 2024. The adjustment is tied to the Consumer Price Index (CPI), a measure that tracks changes in the cost of living. This means Virginia’s minimum wage now rises in step with inflation, aiming to help workers keep up with everyday expenses.
This update is not just a number on a paycheck—it affects thousands of families, businesses, and communities. The new rate applies to most workers covered under Virginia law, while tipped workers have a different base wage but must still earn at least the minimum wage when tips are included. Employers, lawmakers, and advocacy groups are all watching closely as Virginia moves toward its goal of a $15 minimum wage, with more changes on the horizon.
Let’s break down what this means for workers, employers, and the broader Virginia community in 2025 and beyond.
What Is the Minimum Wage in Virginia for 2025?
Virginia’s minimum wage in 2025 is $12.41 per hour. This rate applies to most employees who are covered by state wage laws. The increase from $12.00 to $12.41 per hour is based on the CPI, which helps ensure that wages keep up with rising prices for things like food, housing, and transportation.
For tipped workers, such as restaurant servers and bartenders, the base wage remains at $2.13 per hour. However, these workers must still earn at least $12.41 per hour when their tips are added to their base wage. If their total earnings fall short, employers are required by law to make up the difference.
Minimum Wage Breakdown for 2025
- General minimum wage: $12.41 per hour
- Tipped workers’ base wage: $2.13 per hour (total with tips must reach $12.41 per hour)
Employers must post the official 2025 Virginia Minimum Wage Poster in the workplace to inform employees of their rights and the current wage rates.
How Did Virginia’s Minimum Wage Reach $12.41 in 2025?
Virginia’s journey to a higher minimum wage began with the passage of the Virginia Minimum Wage Act by the General Assembly in 2020. This law set a schedule for gradual increases, moving away from the federal minimum wage of $7.25 per hour that had been in place for years.
Here’s a look at the planned schedule and actual changes:
- May 1, 2021: Increased to $9.50 per hour
- January 1, 2022: Increased to $11.00 per hour
- January 1, 2023: Increased to $12.00 per hour
- January 1, 2025: Planned to rise to $13.50 per hour, but instead adjusted to $12.41 per hour based on CPI
The original plan called for a jump to $13.50 in 2025, but the actual increase was smaller. This change happened because the law allowed for adjustments based on inflation and other economic factors. The CPI adjustment is designed to protect workers from losing buying power when prices go up, but it also gives lawmakers flexibility to respond to changes in the economy.
What’s Next for Virginia’s Minimum Wage?
Big changes are still ahead. The next scheduled increase is set for January 1, 2026, when the minimum wage is planned to rise sharply to $15.00 per hour. This is part of Virginia’s long-term goal to reach a $15 minimum wage, a target shared by several other states.
However, the path to $15 is not set in stone. In February 2025, the General Assembly passed HB1928, a bill that would adjust the timeline:
- January 1, 2026: Increase to $13.50 per hour
- January 1, 2027: Increase to $15.00 per hour
This bill also requires that, starting in 2027, the minimum wage will be adjusted every year based on the CPI. This means that after reaching $15, the wage could continue to rise if the cost of living goes up.
Governor Glenn Youngkin has the final say on HB1928. As of early 2025, the bill is awaiting his approval. If signed, it will set the new schedule for wage increases and annual adjustments.
Why Did Virginia Link Minimum Wage to the CPI?
The decision to tie the minimum wage to the CPI is meant to help workers keep up with the rising cost of living. The CPI measures how much prices for everyday goods and services change over time. When the CPI goes up, it usually means that things like groceries, rent, and gas are getting more expensive.
By linking the minimum wage to the CPI, Virginia aims to:
- Protect workers’ buying power: Wages rise as prices rise, so workers can afford the same goods and services.
- Provide stability for businesses: Employers can plan for regular, predictable wage increases instead of sudden jumps.
- Reduce political battles: Automatic adjustments mean lawmakers don’t have to debate wage increases every year.
However, the law also gives the Commissioner of Labor and Industry the power to pause increases if there is negative job growth. This is meant to protect businesses during tough economic times.
Who Is Affected by the 2025 Minimum Wage Increase?
Workers: The new minimum wage benefits thousands of workers across Virginia, especially those in retail, hospitality, food service, and other low-wage industries. For many families, even a small increase can help cover rising costs for rent, groceries, and transportation.
Tipped workers: Servers, bartenders, and others who earn tips must still receive at least $12.41 per hour when tips are included. If tips are low, employers must make up the difference. This rule helps protect tipped workers from earning less than the minimum wage.
Employers: Businesses must update their payroll systems and budgets to reflect the new wage. They also need to post the latest wage information in the workplace and make sure they are following all state rules. Failure to comply can lead to penalties and back pay for workers.
Advocacy groups: Organizations like CASA, represented by Virginia State Director Luis Aguilar, have pushed for higher wages, saying that increases are essential for families struggling with rising living costs.
Government agencies: The Virginia Department of Labor and Industry (DOLI) is responsible for enforcing the minimum wage law and providing guidance to employers and workers.
What Are the Practical Steps for Employers in 2025?
Employers in Virginia must take several steps to comply with the new minimum wage law:
- Update payroll systems: Make sure all employees are paid at least $12.41 per hour starting January 1, 2025.
- Monitor tipped employees: Check that tipped workers’ total earnings (base wage plus tips) meet or exceed $12.41 per hour. If not, pay the difference.
- Post required notices: Display the official 2025 Virginia Minimum Wage Poster in a visible location at the workplace.
- Plan for future increases: Prepare for the scheduled jump to $15.00 per hour in 2026 or 2027, depending on legislative action.
- Stay informed: Follow updates from the Virginia Department of Labor and Industry and the General Assembly for any changes to the law.
Employers can find official guidance and resources on the Virginia Department of Labor and Industry website.
How Does Virginia’s Minimum Wage Compare to Other States?
Virginia’s minimum wage of $12.41 per hour in 2025 puts it ahead of many states that still follow the federal minimum wage of $7.25 per hour. However, it is still behind states like California and Washington, which have already reached or surpassed $15 per hour.
The move toward a $15 minimum wage is part of a broader trend across the United States 🇺🇸. Several states and cities have set their own higher minimum wages, often tied to the cost of living. This patchwork of wage laws means that workers’ pay can vary widely depending on where they live and work.
What Are the Arguments For and Against Raising the Minimum Wage?
Supporters of higher minimum wages, including many advocacy groups and some lawmakers, argue that:
- Higher wages help workers keep up with the cost of living.
- Increased pay can reduce poverty and improve quality of life for low-income families.
- More money in workers’ pockets can boost local economies, as people spend more on goods and services.
Opponents, including some business groups and employers, worry that:
- Higher labor costs could lead to job losses or reduced hours, especially for small businesses.
- Businesses may raise prices to cover higher wages, which could contribute to inflation.
- Automatic increases tied to the CPI could make it harder for businesses to plan for the future.
Virginia’s approach tries to balance these concerns by phasing in increases and allowing for pauses if the economy slows down.
What Should Workers Do If They Are Not Paid the Minimum Wage?
If you are a worker in Virginia and believe you are not being paid the correct minimum wage, you have the right to file a complaint with the Virginia Department of Labor and Industry. The department investigates wage complaints and can order employers to pay back wages if violations are found.
Workers should:
- Keep records of hours worked and pay received.
- Report any suspected violations to DOLI.
- Ask their employer for clarification if they believe there is a mistake.
Employers are required by law to keep accurate records and pay all workers at least the minimum wage.
What Does the Future Hold for Virginia’s Minimum Wage?
The future of Virginia’s minimum wage depends on several factors:
- Legislative action: If Governor Glenn Youngkin signs HB1928, the path to $15 per hour will be set, with annual CPI adjustments starting in 2027.
- Economic conditions: The Commissioner of Labor and Industry can pause increases if job growth is negative, providing a safety valve for businesses during downturns.
- Cost of living: As inflation continues to affect prices, the CPI-based adjustments will help ensure that wages keep pace with expenses.
According to analysis by VisaVerge.com, Virginia’s approach reflects a growing trend among states to tie minimum wage increases to the cost of living, providing more stability for workers and employers alike.
Key Takeaways for 2025
- Virginia’s minimum wage is $12.41 per hour as of January 1, 2025.
- Tipped workers must earn at least $12.41 per hour when tips are included; the base wage remains $2.13 per hour.
- The next scheduled increase is to $15.00 per hour by January 1, 2026, pending legislative approval.
- Annual adjustments based on the CPI will begin in 2027, helping wages keep up with inflation.
- Employers must comply with the new rates, update payroll, and post required notices.
- Workers should monitor their pay and report any violations to the Virginia Department of Labor and Industry.
Where to Find More Information
For the most up-to-date information on Virginia’s minimum wage, including official wage posters, compliance guidance, and how to file a complaint, visit the Virginia Department of Labor and Industry.
Employers and workers can also contact the Virginia Association of Counties (VACo) for resources and support at the county level.
Final Thoughts
Virginia’s minimum wage increase in 2025 is more than just a change in numbers—it’s a step toward better pay for workers and a sign of the state’s commitment to fair wages. With more increases planned and a system that adjusts for inflation, Virginia is working to balance the needs of workers, businesses, and the economy. As the state moves toward a $15 minimum wage, staying informed and prepared will be key for everyone involved.
Learn Today
Minimum Wage → The lowest hourly pay employers must legally give employees under state or federal law.
Consumer Price Index (CPI) → An economic measure tracking changes in prices for goods and services over time.
Tipped Workers → Employees who receive tips from customers, with a lower base wage but must meet minimum total pay.
Virginia Minimum Wage Act → 2020 law setting scheduled increases to Virginia’s minimum wage above federal levels.
Commissioner of Labor and Industry → Official who can pause minimum wage increases during negative job growth periods.
This Article in a Nutshell
Virginia’s 2025 minimum wage increases to $12.41 per hour, reflecting inflation. Tipped workers must still reach this wage combined with tips. Future rises aim for $15 by 2026 or 2027, tied to CPI, balancing economic stability, workers’ needs, and business concerns across the state.
— By VisaVerge.com
