Illinois Minimum Wage 2025: Complete Breakdown and Rates

Key Takeaways

• Illinois minimum wage increases to $15.00 per hour for most workers on January 1, 2025.
• Tipped workers start at $9.00 per hour with tip credits; youth workers face special rates.
• Chicago and Cook County have higher local wages; employers must pay the higher rate.

As of January 1, 2025, the minimum wage in Illinois state will reach $15.00 per hour for most workers, marking a major milestone for employees and employers across the state. This change is the result of a multi-year plan signed into law in 2019, which gradually raised the minimum wage from $9.25 in 2020 to $15.00 in 2025. The increase affects not only standard workers but also minors, tipped employees, and those working in specific areas like Chicago and Cook County. The new rates bring important changes for immigrants, long-term residents, business owners, and anyone working or hiring in Illinois state.

Let’s break down what this means, who is affected, and how these changes fit into the broader context of wage laws and immigration in Illinois state.

Illinois Minimum Wage 2025: Who Is Affected and How

The new minimum wage applies to most non-tipped employees aged 18 and over in Illinois state. Starting January 1, 2025, these workers must be paid at least $15.00 per hour. This is a statewide rule, so it covers all cities and counties unless a local law sets a higher minimum wage.

Key groups affected include:

• Standard employees (18 and over): $15.00 per hour statewide
• Minors (under 18): $13.00 per hour if working fewer than 650 hours per year; $15.00 per hour if working more than 650 hours
• Tipped employees: $9.00 per hour during the first 90 days of employment, with employers allowed to count tips as part of the wage (called a “tip credit”)
• Youth workers in special programs: $16.50 to $16.60 per hour in certain city contracts, especially in Chicago, starting July 1, 2025

Local wage rates may be higher:
Some cities and counties, especially Chicago and Cook County, have their own minimum wage laws. These local rules can set higher pay rates than the state minimum. Employers must always pay the higher wage if local and state laws differ.

Detailed Breakdown: Illinois Minimum Wage 2025

To help you understand the different rates, here’s a simple breakdown:

Important:
If you work in Chicago or Cook County, always check the local minimum wage. Employers must pay the higher rate if the local minimum is above the state minimum.

Why Did Illinois raise the minimum wage?

The push to raise the minimum wage in Illinois state started years ago. Many workers and advocates argued that the old minimum wage was not enough to cover basic living costs, especially in cities with high rent and food prices. In 2019, Governor JB Pritzker signed Public Act 101-0001, which set a schedule for yearly increases. The goal was to help working families, reduce poverty, and make life more affordable for everyone.

Timeline of Increases:

• 2020: $9.25 per hour
• 2021: $11.00 per hour
• 2022: $12.00 per hour
• 2023: $13.00 per hour
• 2024: $14.00 per hour
• 2025: $15.00 per hour

This gradual approach gave businesses time to adjust while helping workers see steady pay increases.

How Does the Minimum Wage Affect Immigrants and Newcomers?

Many immigrants and newcomers to Illinois state work in jobs that pay close to the minimum wage. These jobs are common in restaurants, hotels, cleaning services, warehouses, and retail stores. The increase to $15.00 per hour means more money in workers’ pockets, which can help families pay rent, buy food, and save for the future.

For immigrants, especially those who are new to the United States 🇺🇸, understanding wage laws is very important. Employers must follow the law, no matter a worker’s immigration status. If you are paid less than the minimum wage, you have the right to ask for the correct pay. The Illinois Department of Labor can help if you have questions or need to file a complaint.

Tipped Workers and Immigrants:
Many immigrants work in restaurants or hotels where tips are common. In Illinois state, tipped workers must be paid at least $9.00 per hour during their first 90 days, plus their tips. If tips do not bring their total pay up to the full minimum wage, the employer must make up the difference. This rule protects workers from being underpaid.

Special Rules for Minors and Youth Workers

If you are under 18 and work fewer than 650 hours in a year, your minimum wage is $13.00 per hour in 2025. If you work more than 650 hours, you must be paid the full $15.00 per hour. This rule helps protect young workers while giving employers some flexibility for part-time or summer jobs.

In Chicago, youth workers in certain city programs or contracts will earn even more—up to $16.60 per hour starting July 1, 2025. This higher wage is meant to support young people, especially those in subsidized or transitional jobs.

Chicago and Cook County: Higher Local Minimum Wages

Some areas in Illinois state have set their own minimum wage laws. Chicago and Cook County are the most notable examples.

Chicago:
– Employers with 4–20 employees: $15.00 per hour (since July 1, 2023)
– Employers with 21+ employees: $15.80 per hour (since July 1, 2023)
– Tipped workers: $9.48 per hour (for larger employers)
– Youth workers: $16.50 or more per hour (from July 1, 2025)
– City contracts/concessionaires: $17.80 per hour (non-tipped), $12.62 per hour (tipped) from July 1, 2025

Cook County:
– Non-tipped workers: $15.00 per hour (matches state minimum from Jan 1, 2025)
– Tipped workers: $9.00 per hour

If you work in Chicago or Cook County, your employer must pay you the higher local wage if it is above the state minimum. This is especially important for immigrants and newcomers, who may not always know about local wage laws.

Wage Transparency: New Rules for Employers

Starting in 2025, Illinois employers with 15 or more workers must include pay scale and benefits information in job postings. This means job seekers will know how much a job pays before applying. The change comes from updates to the Illinois Equal Pay Act and is part of a larger effort to make wages fair and open.

For immigrants and anyone looking for work, this rule helps you make better choices and avoid jobs that pay less than the law requires.

What Should Employers Do?

Employers in Illinois state must follow the new minimum wage rules starting January 1, 2025. This means:

• Update payroll systems to reflect the new rates
• Pay minors and tipped employees according to the correct rules
• Check local laws in Chicago and Cook County to make sure you are paying the right wage
• Include pay and benefits in job postings if you have 15 or more employees

Employers who do not follow the law can face fines and other penalties. It is important to keep good records and make sure all workers are paid correctly.

Practical Impacts: What Does This Mean for Workers and Businesses?

For Workers:
– Higher pay means more money for rent, food, and other needs
– Tipped workers are protected from being underpaid
– Young workers get special rates, with higher pay in some city programs
– Job postings must now show pay and benefits, making it easier to compare jobs

For Employers:
– Payroll costs will go up, especially for businesses with many low-wage workers
– Hiring decisions may change as businesses adjust to higher wages
– Wage structures may need to be reviewed to keep pay fair for all workers
– Compliance is key—failing to pay the right wage can lead to penalties

Historical Context: How Did We Get Here?

Illinois state has a long history of raising the minimum wage to help workers. The most recent law, Public Act 101-0001, was signed by Governor JB Pritzker in 2019. The law set a clear schedule for increases, giving both workers and businesses time to prepare.

Before this law, the minimum wage had not kept up with the cost of living. Many workers struggled to pay for basic needs. The new law was designed to fix this by raising wages in steps, ending with $15.00 per hour in 2025.

Governor Pritzker has said that raising the minimum wage is part of a larger plan to help working families and make Illinois state a better place to live and work.

What Happens After 2025?

As of now, there are no scheduled increases beyond 2025. The minimum wage will stay at $15.00 per hour unless the Illinois state legislature passes a new law. However, local areas like Chicago may continue to raise their own minimum wages.

Wage transparency rules may also change in the future, as the state looks for new ways to make pay fair and open for everyone.

Where to Find Official Information

If you have questions about the minimum wage in Illinois state, you can visit the Illinois Department of Labor Minimum Wage page for the latest updates and official guidance. This site has information in several languages and can help both workers and employers understand their rights and responsibilities.

For questions about special programs or city contracts, the Illinois Department of Human Services (IDHS) can also help. You can call the IDHS Help Line at 1-800-843-6154 or TTY 1-866-324-5553.

Key Takeaways for Immigrants and Newcomers

• Know your rights: You must be paid at least the minimum wage, no matter your immigration status.
• Check local laws: If you work in Chicago or Cook County, you may be entitled to a higher wage.
• Tipped workers: Your employer must make sure your total pay (wages plus tips) is at least the minimum wage.
• Youth workers: Special rules apply if you are under 18 or in a city program.
• Job postings: Employers with 15 or more workers must show pay and benefits in job ads.

If you think you are not being paid correctly, you can contact the Illinois Department of Labor for help.

Looking Ahead: What Should You Do Next?

• Workers: Review your paychecks in January 2025 to make sure you are getting the new minimum wage. If you are not, talk to your employer or contact the state for help.
• Employers: Update your payroll and job postings before January 1, 2025. Make sure you follow both state and local wage laws.
• Immigrants and newcomers: Learn about your rights and ask questions if you are unsure. Many community groups and legal aid organizations can help you understand wage laws.

As reported by VisaVerge.com, the increase to a $15.00 minimum wage in Illinois state is a big step for workers and families, especially those who are new to the United States 🇺🇸 or working in low-wage jobs. The change brings new opportunities, but also new responsibilities for employers and workers alike.

By staying informed and knowing your rights, you can make the most of these changes and help build a better future for yourself and your family in Illinois state.

Learn Today

Minimum Wage → The lowest hourly pay rate employers are legally required to pay workers in Illinois state.
Tip Credit → A wage allowance letting employers count a portion of tips toward a tipped employee’s minimum wage.
Public Act 101-0001 → 2019 Illinois law setting a schedule to gradually raise the state’s minimum wage through 2025.
Tipped Employees → Workers who earn tips, such as restaurant servers, with specific wage protections in Illinois.
Wage Transparency → Requirement for employers to disclose pay scales and benefits in job postings starting 2025.

This Article in a Nutshell

Illinois raises its minimum wage to $15.00 in 2025, affecting workers statewide including minors and tipped employees. Local laws in Chicago and Cook County set higher wages. New rules mandate wage transparency, safeguarding immigrant and newcomer workers’ rights and enhancing fairness across Illinois workplaces.
— By VisaVerge.com