Wage impacts of increasing the minimum wage under the Raise the Wage Act of 2021, 2021–2025 (2021$)

Directly affected workers All (directly & indirectly) affected workers
Date New minimum wage (nominal) New minimum wage (2021$) New tipped minimum wage (nominal) New tipped minimum wage 2021$) Total real wage increase (thousands) Change in avg. real hourly wage Change in avg. real annual income (year-round workers) Real percent change in avg. annual income Total real wage increase (thousands) Change in avg. real hourly wage Change in avg. real annual earnings (year-round workers) Real percent change in avg. annual earnings
October 2021 $9.50 $9.50 $4.95 $4.95 $5,691,568 $1.25 $1,737 14.4% $9,535,554 $0.77 $1,153 6.9%
October 2022 $11.00 $10.80 $6.95 $6.82 $17,119,724 $1.77 $2,602 18.1% $24,074,412 $1.15 $1,763 9.6%
October 2023 $12.50 $12.01 $8.95 $8.60 $40,107,467 $1.96 $3,027 17.7% $48,602,487 $1.40 $2,219 10.9%
October 2024 $14.00 $13.16 $10.95 $10.29 $72,148,091 $2.43 $3,866 20.5% $83,247,648 $1.78 $2,885 13.0%
October 2025 $15.00 $13.79 $12.95 $11.90 $95,710,521 $2.68 $4,340 21.7% $108,412,570 $2.06 $3,369 14.5%

Notes: Values reflect the results of the proposed changes in the federal minimum wage under the Raise the Wage Act of 2021. 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 will exceed their current 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.