Minimum wage increase coming this month in New York

U.S. paper currency bills sit on a surface

SimpleImages | Getty Images

Workers making minimum wage in most areas of New York will get a pay bump at the end of December.

The minimum for workers in areas outside New York City, Long Island and Westchester County will increase from $13.20 per hour to $14.20, an increase of 7.5%, according to the state Labor Department. The pay bump means an extra $40 a week for someone working full time in a minimum wage job.

The new rate goes into effect Dec. 31.

Workers in New York City, Westchester County and Long Island already make at least $15 an hour. All fast food workers in the state also get paid a minimum wage of $15 an hour. Those minimum amounts will not increase this year.

Minimum pay rates for tipped workers like servers vary by region.

New York established a tiered schedule of minimum wage increases in 2016, with the goal of eventually raising the wage to $15 an hour everywhere. Annual increases are determined by the Division of Budget each year and are based on economic indices including the Consumer Price Index, which measures inflation.

Inflation has been running at its highest level in decades for much of 2022, although it has started to slow somewhat in recent months.

The $1 an hour increase this year follows a 70 cent hike a year ago.

Minimum wage in New York has increased substantially in the last 10 years. A decade ago it was $7.25 an hour, half the amount the wage will be once the next increase takes effect, according to the Labor Department.

The wage was still $8.75 an hour as recently as 2015, before lawmakers passed the plan for regular bumps.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.