CHICAGO — Thousands of hourly workers in Chicago are now legally entitled to higher pay, as the city’s minimum wage officially increased on July 1, 2025. The change affects full-time workers, youth employees, and tipped wage earners — and could mean a meaningful difference in your next paycheck.
The City of Chicago’s new minimum wage is $16.60 per hour, up from $15.80. That puts it well above the current Illinois state minimum wage of $14.00/hour — and higher than nearby suburbs in Cook County, according to ABC 7 Chicago.
Here’s Who the New Wage Affects
Under the Chicago Minimum Wage Ordinance, the 2025 update applies to:
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Most hourly employees working within Chicago city limits
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Tipped employees, such as restaurant servers
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Youth workers, including students under 18
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Subsidized temporary workers, including summer youth programs
The law applies to employers with 4 or more workers, regardless of full-time or part-time status.
2025 Minimum Wage Breakdown in Chicago
As of July 1, 2025:
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Standard hourly wage: $16.60
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Tipped wage (base): $11.54 (tips must bring total to $16.60)
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Youth/Teen workers: $16.50
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Subsidized programs: $16.50 minimum
Employers are still required to make up the difference if tips don’t reach the full minimum, as reinforced by city rules from the Department of Business Affairs and Consumer Protection.
Why the Increase? It’s Built Into City Law
The annual raise is tied to the Consumer Price Index (CPI) — a measure of inflation. The law includes a built-in adjustment every July 1. This year’s updated wage was confirmed by City of Chicago officials and announced in late June.
What If You’re Still Being Paid Less?
If you’re working within Chicago and not seeing the new wage reflected, you have legal options.
According to the City’s Office of Labor Standards, workers can:
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File a complaint anonymously
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Request back pay for any wage owed
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Contact organizations like Raise the Floor Alliance for help
Comparison With Surrounding Areas
| Location | Minimum Wage (July 2025) |
|---|---|
| Chicago | $16.60 |
| Cook County (non-Chicago) | $14.05 (estimated) |
| Illinois (Statewide) | $14.00 |
| Indiana (state minimum) | $7.25 |
While Chicago leads the region in worker pay, many suburbs do not match its rate, creating disparities for those who travel across city lines for work.
Who’s Exempt From the New Rate?
There are limited exemptions under the ordinance, including:
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Certain nonprofits or government programs
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Small businesses with fewer than 4 employees
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Federal or state job categories not covered by local ordinances
Full exemption details are listed by the City of Chicago Minimum Wage Office.
Have You Seen the Pay Raise Yet?
If you live or work in Chicago and haven’t seen your hourly wage increase, we want to hear from you. Leave a comment below and share your story — your voice might help others take action.
