NYS Minimum Wage Increases Included in 2024 Budget

May 17, 2023

nys minimum wage 2023 poster background banner

Starting in 2024, Minimum Wage in New York State will increase incrementally over a three-year period, then be tied to inflation, Gov. Kathy Hochul announced earlier this month.

Minimum Wage Increase

Starting January 1, 2024, minimum wage will rise to $16 per hour in New York City and select counties (Nassau, Suffolk, and Westchester), and $15 per hour in other parts of the state. Following the initial increase, the minimum wage amount will increase an by additional $0.50 per hour increment each year until 2027.

NYS Minimum Wage Increase Schedule (2024-26)
	New York State	New York City
2024	$15.00/hr	$16.00/hr
2025	$15.50/hr	$16.50/hr
2026	$16.00/hr	$17.00/hr

"In the face of steadily rising costs and inflation," said NY Governor Kathy Hochul, "this historic plan to overhaul New York's minimum wage will ensure that the wages of those hit hardest by the affordability crisis - including women, single mothers, and people of color - keep pace with the cost of living,"

Indexing to Inflation

Starting January 1, 2027, future increases will be determined by the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. This approach, known as indexing, will maintain workers' purchasing power and align their wages with inflation.

"This is a win for workers and for businesses," said Gov. Hochul. "Indexing the minimum wage to inflation will help hundreds of thousands of New Yorkers maintain their purchasing power, contribute to the state economy, and support our small business community."

Comparing NYS to National Trends

New York State's minimum wage increases, and its eventual indexing to inflation aligns with trends observed in other states. Currently, eighteen states tie their minimum wage to inflation or other economic formulas, with three states already having minimum wages at or above $15 in 2023.

** The information in this content was current at the time of writing. For the latest wage information, please see our updated resource.

About the Author

Kim Brown-Webster is a SHRM Certified Professional (SHRM-CP) with over 23 years of Human Resources experience.

Labor law Payroll New York Law Minimum Wage

DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting, or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.