Summary of minimum wage increases under the Raise the Wage Act of 2021, and number of workers affected by the increases, 2021–2025

Date New minimum wage Increase over previous minimum wage New tipped minimum wage Tipped minimum increase Total estimated U.S. workforce (thousands) Directly affected (thousands) Indirectly affected (thousands) Total affected (thousands) Affected workers’ share of U.S. workforce
October 2021 $9.50 $2.25 $4.95 $2.82 148,172 3,279 4,996 8,275 5.6%
October 2022 $11.00 $1.50 $6.95 $2.00 149,020 6,591 7,075 13,666 9.2%
October 2023 $12.50 $1.50 $8.95 $2.00 149,893 13,296 8,653 21,950 14.6%
October 2024 $14.00 $1.50 $10.95 $2.00 150,791 18,670 10,190 28,860 19.1%
October 2025 $15.00 $1.00 $12.95 $2.00 151,716 22,055 10,126 32,181 21.2%

Notes: Values reflect the results of the proposed changes in the federal minimum wage under the Raise the Wage Act of 2021. As of March 2021, the federal minimum wage is $7.25 an hour and the federal tipped minimum wage is $2.13 per hour. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate exceeds their existing hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Wage increase totals are cumulative of all preceding steps.

Source: Economic Policy Institute Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).

View the underlying data on epi.org.