The federal government has finally confirmed the new minimum wage for all Texas residents, which will take effect this month. In the United States, the federal minimum wage has remained unchanged since 2009, at $7.25 per hour.
This 16-year freeze represents the longest period of no change since the minimum wage was established in 1938. This antiquated number has made it difficult for many families to meet their basic needs as the cost of living rises.
In response, 30 states and the District of Columbia have passed legislation to raise the minimum wage above the federal level. These states typically adjust wages once a year to account for rising living costs and inflation. States that follow the federal baseline, such as Texas, have disadvantaged many workers.
Texas will raise the minimum wage for its residents due to inflation rises
Even though the state is reliant on the federal minimum wage, several Texas municipalities have taken steps to raise wages for their employees and, in some cases, those with contracts with the local government. With significant pay increases for 2025, Austin, Dallas, Houston, Fort Worth, and San Antonio are setting the standard, as detailed below:
- Austin: The living wage for regular and temporary city employees was increased by the City Council to $21.63 per hour in October 2024, over three times the federal rate. This bold move aims to address the rapidly rising cost of living in Austin.
- Houston: The Harris government commissioners overwhelmingly decided to match the pay of government employees by raising the minimum salary for county contract workers to $15 per hour.
- Dallas: The minimum pay for general service contracts must be adjusted annually, according to a policy put in place by the City of Dallas. The 2025 Living Wage is $22.05 per hour, which is $3.81 more than the 2024 Living Wage.
- Fort Worth: Last year in October, the city’s minimum wage for both permanent and temporary employees increased to $16.07. However, the minimum wage will rise to $18.00 per hour beginning with payments on February 14, 2025.
- San Antonio: City employees with more than five years of service or related experience will have their pay increased to a particular percentage of their pay range if they are not currently paid that amount, even though there is no general raise in the minimum wage from the current $18.
With these increases, Texas’ largest cities are beginning to compete with states with minimum wages ranging from $16 to $17 per hour, including California, New York, Washington, and the District of Columbia. However, the minimum wage applies to all workers in these locations, not just those employed by the city or on contract with the local government.

Which will be the states with the highest minimum wage increases this year?
In recent years, all US states have raised the minimum wage so that people have more money to keep up with inflation. According to recent confirmation from the US Department of Labor, the following will be the highest minimum wages for this year:
- Washington: $17.50 per hour.
- California: $16.50/hr.
- Washington state: $16.66 per hour.
- Connecticut: $16.35.
- New York: $16.50/hour.
- New Jersey: $15.49 per hour.
- Delaware, Illinois, Maryland, Massachusetts, and Rhode Island: $15 per hour.
Due to the federal Fair Labor Standards Act, which mandates that all states pay a minimum wage for jobs covered by it, 14 states pay the federal minimum wage of $7.25.
For companies that fulfill specific criteria, some charge more. While Wyoming does not compel businesses with six or more employees to pay $5.15 per hour, Georgia does. Tennessee, Louisiana, Mississippi, South Carolina, and Alabama all have no minimum wage laws.
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