Alaska Minimum Wage 2025: Detailed Breakdown of Rates and Changes

In 2025, Alaska increases minimum wage twice and mandates paid sick leave for many workers. Ballot Measure 1 ensures a $15 wage by 2027. These laws apply statewide, supporting workers’ income and health, especially immigrants, while employers must comply with new payroll and reporting requirements.

Key Takeaways

• Alaska’s minimum wage increases twice in 2025: $11.91 on Jan 1 and $13.00 on July 1.
• Paid sick leave begins July 1, 2025: 56 hours for 15+ employees, 40 hours for fewer.
• Ballot Measure 1 sets path to $15 minimum wage by 2027 with annual inflation adjustments.

Alaska’s Minimum Wage in 2025: What Workers, Employers, and Immigrants Need to Know

Alaska is making major changes to its minimum wage in 2025, with two separate increases set to take effect during the year. These changes are designed to help workers keep up with the high cost of living in Alaska and reflect both inflation adjustments and new rules approved by voters. Here’s a detailed look at what’s happening, why it matters, and how it could affect workers—including immigrants—employers, and families across the state.

Alaska Minimum Wage 2025: Detailed Breakdown of Rates and Changes
Alaska Minimum Wage 2025: Detailed Breakdown of Rates and Changes

Alaska’s Minimum Wage in 2025: The Key Facts

Who: All employees in Alaska, including immigrants and U.S. citizens, except for a few special groups (like some farm workers, domestic workers, and government employees).

What: The minimum wage in Alaska will rise twice in 2025—from $11.91 per hour on January 1 to $13.00 per hour on July 1.

When: The first increase starts January 1, 2025. The second, larger increase begins July 1, 2025.

Where: These changes apply everywhere in Alaska, from Anchorage to remote villages. There are no local exceptions.

Why: The increases are meant to help workers keep up with rising prices and to make sure wages are fair, especially given Alaska’s high cost of living.

How: The changes come from two sources: an automatic inflation adjustment required by state law, and a new law passed by voters in 2024 (Ballot Measure 1) that sets a path to a $15 minimum wage by 2027.

Let’s break down what these changes mean, how they work, and what you need to do if you’re a worker, employer, or someone thinking about moving to Alaska.

Minimum Wage Breakdown: What’s Changing and When

Alaska’s minimum wage is not just going up once in 2025—it’s going up twice. Here’s how it works:

January 1, 2025: Minimum Wage Rises to $11.91 per Hour

  • This is a 1.5% increase from the 2024 rate of $11.73 per hour.
  • The increase is based on the Anchorage Consumer Price Index (CPI), which measures how much prices are rising in Alaska’s largest city.
  • This adjustment is required by Alaska Statute 23.10.065(a), which says the minimum wage must go up each year if prices go up.
  • The new rate applies to all workers, including those who get tips. Alaska does not allow a “tip credit,” so tipped workers must get at least the full minimum wage.

July 1, 2025: Minimum Wage Jumps to $13.00 per Hour

  • This is a much bigger increase—about 8.3%—and comes from Ballot Measure 1, which voters approved in 2024.
  • Ballot Measure 1 sets a plan to raise the minimum wage in steps: $13.00 in 2025, $14.00 in 2026, and $15.00 in 2027.
  • After 2027, the minimum wage will keep rising each year based on inflation.
  • Employers must start paying the new $13.00 rate on July 1, 2025.

Future Scheduled Increases

  • July 1, 2026: Minimum wage rises to $14.00 per hour.
  • July 1, 2027: Minimum wage rises to $15.00 per hour.
  • After 2027: The minimum wage will be adjusted every year based on inflation, using the Anchorage CPI.

Summary Table: Alaska Minimum Wage Changes in 2025 and Beyond

Date Minimum Wage Rate Reason for Change
January 1, 2025 $11.91 per hour Annual inflation adjustment (Anchorage CPI)
July 1, 2025 $13.00 per hour Ballot Measure 1 (voter-approved increase)
July 1, 2026 $14.00 per hour Ballot Measure 1 (scheduled increase)
July 1, 2027 $15.00 per hour Ballot Measure 1 (scheduled increase)
After 2027 Adjusted annually Inflation adjustment (Anchorage CPI)

Why Is Alaska’s Minimum Wage Increasing?

Alaska’s minimum wage is going up for two main reasons:

  1. Inflation Adjustment: Alaska law requires the minimum wage to go up each year if prices go up. This helps workers keep their “purchasing power”—meaning their pay can still buy the same amount of goods and services, even as prices rise.

  2. Voter-Approved Ballot Measure: In 2024, Alaska voters passed Ballot Measure 1, which sets a clear path to a $15 minimum wage by 2027. This was done because many people in Alaska felt the old minimum wage was not enough to live on, especially with high housing, food, and transportation costs.

How Does Alaska’s Minimum Wage Compare to Other States?

Alaska’s minimum wage is higher than the federal minimum wage, which is $7.25 per hour and has not changed since 2009. Many other states have also raised their minimum wages in recent years, but Alaska’s planned increases put it among the states with the highest minimum wages in the country.

For example, by 2027, Alaska’s $15 minimum wage will match or exceed the minimum wage in states like California and Washington, which are known for having higher wage standards.

Who Is Covered by Alaska’s Minimum Wage?

Almost all workers in Alaska are covered by the minimum wage law. This includes:

  • Full-time and part-time workers
  • Seasonal workers (such as those in fishing or tourism)
  • Immigrants working legally in Alaska
  • Tipped workers (waiters, bartenders, etc.)

Important: Alaska does not allow a “tip credit.” This means employers cannot pay tipped workers less than the minimum wage. All workers must get at least the full minimum wage, plus any tips they earn.

Exemptions: Some workers are not covered by the minimum wage law. These include:

  • Certain farm workers
  • Domestic workers (like live-in nannies)
  • Government employees
  • Bona fide executives and professionals

For a full list of exemptions, you can check the Alaska Wage and Hour Act on the Alaska Department of Labor and Workforce Development website.

What About Overtime?

Alaska law also sets rules for overtime pay. If you work more than 40 hours in a week, your employer must pay you 1.5 times your regular hourly wage for every extra hour. This means that after July 1, 2025, overtime pay will be at least $19.50 per hour (1.5 x $13.00).

Paid Sick Leave: New Rules Starting July 1, 2025

Another big change coming in 2025 is the new paid sick leave requirement, also part of Ballot Measure 1. Here’s what you need to know:

  • Employers with 15 or more employees: Must provide up to 56 hours of paid sick leave per year.
  • Employers with fewer than 15 employees: Must provide up to 40 hours of paid sick leave per year.

This means workers can take paid time off if they are sick or need to care for a sick family member, without losing pay. This is especially important for immigrants and low-wage workers, who may not have had paid sick leave before.

Why Paid Sick Leave Matters

Paid sick leave helps workers stay healthy and avoid spreading illness at work. It also gives families peace of mind, knowing they can take care of themselves or their children without risking their job or paycheck.

How Do These Changes Affect Immigrants and Newcomers?

For immigrants and newcomers to Alaska, these changes can make a big difference. Many immigrants work in jobs that pay close to the minimum wage, such as in restaurants, hotels, or seasonal industries like fishing and tourism. The higher minimum wage means more money in their pockets, which can help with rent, food, and other basic needs.

Paid sick leave is also a big help for immigrant families, who may not have had this benefit before. It means workers can take care of themselves or their children when they are sick, without worrying about losing income.

Employers’ Responsibilities: What Businesses Need to Do

Employers in Alaska must follow the new minimum wage and paid sick leave rules. This means:

  • Update payroll systems to pay at least $11.91 per hour starting January 1, 2025, and $13.00 per hour starting July 1, 2025.
  • Provide paid sick leave as required by the new law.
  • Pay overtime at 1.5 times the regular wage for hours over 40 per week.
  • Post notices about the minimum wage and paid sick leave in a place where workers can see them.

If employers do not follow these rules, they can face penalties from the Alaska Department of Labor and Workforce Development.

Economic Impact: What Are People Saying?

Workers and Labor Advocates: Many workers and labor groups support the increases, saying they are needed to help people afford basic living costs in Alaska. They point out that housing, food, and transportation are all more expensive in Alaska than in many other states.

Employers and Business Groups: Some business owners, especially those running small businesses, worry about the higher labor costs. They say it could be hard to afford the increases, especially in industries with thin profit margins. However, most employers are preparing to comply with the new rules.

State Officials: Alaska officials say the changes are a balance between helping workers and keeping the economy strong. They note that tying the minimum wage to inflation helps make sure wages stay fair over time, without big jumps that could hurt businesses.

Why Alaska’s Minimum Wage Policy Is Unique

Alaska’s approach to the minimum wage is different from many other states in a few key ways:

  • No Tip Credit: All workers, even those who get tips, must be paid at least the minimum wage.
  • Annual Inflation Adjustment: The minimum wage goes up automatically each year if prices go up, so workers don’t fall behind.
  • Voter Involvement: The recent increases were approved directly by voters, showing strong public support for higher wages.

How to Find Official Information

If you want to check the latest minimum wage rates, see the full text of the laws, or get answers to common questions, visit the Alaska Department of Labor and Workforce Development. This site has official wage tables, compliance guides, and contact information for help.

For details on paid sick leave and other workplace rights, you can also find resources on the same website.

Historical Context: How Did We Get Here?

Alaska has a long history of adjusting its minimum wage to keep up with the cost of living. In 2014, voters passed a law that tied the minimum wage to inflation, making sure it would go up each year if prices rose.

The 2024 ballot measure was a response to concerns that the minimum wage was still not enough for many workers to afford basic needs, especially as costs in Alaska continued to rise faster than in other states. By setting a clear path to $15 per hour by 2027, Alaska is aiming to make sure workers can better support themselves and their families.

What Happens After 2027?

Once the minimum wage reaches $15 per hour in 2027, it will continue to be adjusted each year based on inflation. This means workers won’t have to wait for lawmakers or voters to act—their wages will keep up with rising prices automatically.

What Should Workers and Employers Do Now?

For Workers:

  • Check your pay stubs to make sure you are getting at least the minimum wage.
  • Ask your employer about paid sick leave starting July 1, 2025.
  • If you think your employer is not following the law, you can contact the Alaska Department of Labor and Workforce Development for help.

For Employers:

  • Update your payroll systems before January 1 and July 1, 2025.
  • Train managers and payroll staff on the new rules.
  • Make sure you are providing paid sick leave as required.
  • Post updated wage and sick leave notices at your workplace.

For Immigrants and Newcomers:

  • Know your rights under Alaska’s minimum wage and paid sick leave laws.
  • If you are working in Alaska, you are likely covered by these rules, regardless of your immigration status (as long as you are working legally).
  • If you have questions, you can find information in multiple languages on the Alaska Department of Labor and Workforce Development website.

Conclusion: Alaska’s Commitment to Fair Wages

Alaska’s minimum wage increases in 2025 show a strong commitment to helping workers keep up with the high cost of living. With two increases in one year, new paid sick leave rules, and a clear path to $15 per hour by 2027, Alaska is setting a high standard for worker protections.

Employers and workers alike should prepare for these changes, update their systems, and make sure they understand the new rules. For immigrants and newcomers, these changes offer better pay and more security, helping them build a better life in Alaska.

As reported by VisaVerge.com, these changes reflect a growing trend across the United States 🇺🇸 to raise minimum wages and improve workplace protections, especially for those most in need. For the most up-to-date information and official guidance, always check the Alaska Department of Labor and Workforce Development.

By staying informed and prepared, everyone in Alaska can benefit from these important changes in 2025 and beyond.

Learn Today

Minimum Wage → The lowest hourly pay rate employers must legally pay workers in Alaska.
Ballot Measure 1 → A 2024 voter-approved law gradually raising Alaska’s minimum wage to $15 by 2027.
Inflation Adjustment → Annual wage increase tied to rising prices using Anchorage Consumer Price Index data.
Paid Sick Leave → Paid time off workers can use when ill or caring for family members.
Tip Credit → A wage allowance where employers pay tipped workers less than minimum wage; not allowed in Alaska.

This Article in a Nutshell

In 2025, Alaska raises its minimum wage twice to combat inflation and high living costs, benefiting workers, including immigrants, with added paid sick leave for job security and fair pay progression to $15 by 2027.
— By VisaVerge.com

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Shashank Singh
Breaking News Reporter
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As a Breaking News Reporter at VisaVerge.com, Shashank Singh is dedicated to delivering timely and accurate news on the latest developments in immigration and travel. His quick response to emerging stories and ability to present complex information in an understandable format makes him a valuable asset. Shashank's reporting keeps VisaVerge's readers at the forefront of the most current and impactful news in the field.
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