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September 12, 2024

State minimum wage will increase next year by 50 cents an hour

Photo / Mainebiz Maine's minimum wage will increase to $14.65 per hour next year, a 50-cent hike that's expected to boost pay for about 96,000 people.
By Alexis Wells

Maine's minimum wage will increase to $14.65 per hour next year, a hike that's expected to boost pay for about 96,000 people. 

The current statewide minimum wage is $14.15. The Maine Department of Labor announced on Wednesday that the increase — pegged to the inflation rate — will take effect Jan. 1, 2025.

The "tip wage," or the minimum wage for service employees, will increase to $7.33 per hour. 

The Maine Center for Economic Policy says the increase is equivalent to slightly more than an extra $1,000 a year for a full-time, year-round worker. Around 9,000 tipped workers will also see a slight increase in their base wage.

The nonpartisan think tank also noted that the effect of the minimum wage increase in 2025 will be one of the smallest in recent years. That's because wage growth has been unusually strong for Mainers in low-income occupations, resulting in fewer earning at or near the state minimum.

Maine's minimum wage has increased annually under a law created by referendum in 2016. Since 2021, the increases have reflected changes in the cost of living, as measured by the Consumer Price Index for the northeastern U.S. 

According to data from the U.S. Department of Labor, the cost-of-living index increased 3.6% between August 2023 and last month. 

The minimum wages in Portland and Rockland are higher than the state pay. The new minimum wage for both cities in 2025 will be $15.50.

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