The NYS minimum wage was recently raised as of January 1st, 2025. It remains one of the largest wage gaps in the nation (an $8.25/$9.25 difference) compared to the federal rate of $7.25 as of 2025.
The U.S. has held the same federal minimum wage since 2009—that’s 16 years of the same rate!
Other high wage states with a major gap when compared to the federal rate include Washington, California and Oregon. Washington leads the way with the largest wage gap between the federal rate. The Washington State minimum wage is $9.41 above the federal minimum wage.
Minimum wage in NYS
New York maintains one of the highest minimum wages in the country. It is also one of the only two U.S. states that uses regional tiering to vary minimum wage by geographical location. For example, minimum wage is higher in NYC, due to the higher cost of living, than it is say in Albany. States like California with a major urban city such as L.A. does not follow a tier system but holds a statewide minimum.
Moreover, NYS uses a tipped worker structure, which makes up a food or service workers base pay + tip credit. Only seven out of the 50 states mandate a minimum wage before tips.
These numbers are as of January 1st, 2025
NYC
💰 $16.50
🏨 $13.75 cash wage + $2.75 tip credit for tipped service employees
🍽️ $11 cash wage + $5.50 tip credit for tipped food service employees
Westchester
💰$16.50
🏨 $13.75 cash wage + $2.75 tip credit for tipped service employees
🍽️ $11 cash wage + $5.50 tip credit for tipped food service employees
Long Island
💰 $16.50
🏨 $13.75 cash wage + $2.75 tip credit for tipped service employees
🍽️ $11 cash wage + $5.50 tip credit for tipped food service employees
Remainder of NYS
💰 $15.50
🏨 $12.90 cash wage + $2.60 tip credit for tipped service employees
🍽️ $10.35 cash wage + $5.15 tip credit for tipped food service employees
Future of NYS minimum wage
The NYS minimum wage will continue to increase by an annual $0.50 through 2026. However, come January 2027, the NYS minimum wage with fluctuate each year by the Northeast Region’s three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
History of NYS minimum wage
It’s crazy to remember that just 20 years ago, NYS minimum wage was at $6. Here’s some general minimum wages in NYS over around the last half a century.
- October 1, 1960: $1.00
- May 1, 1974: $2.00
- January 1, 1980: $3.10
- April 1st, 1991: $4.25
- March 31, 2000: $5.15
- January 1, 2005: $6.00
- January 1, 2007: $7.15
- December 31st, 2013: $8.00 (above the 2025 federal minimum wage)
- December 31, 2015: $9.00
By 2016, the regional tiering and tipped worker structure kicked in.
Learn more about NYS minimum wage on the NYSDOL website.