Chicago minimum wage set to increase July 1 along with changes for paid time off

By ABC7 Chicago Digital Team 

Wednesday, June 4, 2025

CHICAGO (WLS) — Chicago workers making minimum wage are set to get a raise starting next month.

Starting July 1, the city’s minimum wage will be $16.60 and the minimum wage for subsidized youth employment programs will be $16.50.

Under the One Fair Wage Ordinance, the wages of tipped workers such as restaurant servers, bartenders, bussers and runners who earn a subminimum wage of $12.62 per hour will increase by eight percent per year until it reaches parity with Chicago’s standard hourly minimum wage on July 1, 2028.

Other regulations for paid leave, paid sick time and the Fair Workweek are also set to take effect on July 1.

For the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, workers are guaranteed up to five days of paid leave and five days of paid sick leave for workers who work at least 80 hours within any 120-day period.

Employees can carry over up to 16 hours between 12-month periods and can use paid leave for any reason.

Employees can carry over up to 80 hours of sick leave between 12-month benefit periods

For the Fair Workweek Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes.

Starting July 1, new compensation metrics take effect, with workers in one of seven “covered” industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services) and earn less than or equal to $32.60/hour or earn less than or equal to $62,561.90/year and the employer has at least 100 employees globally covered by the ordinance.

“Chicago is the most pro-worker city in the country, and our labor laws demonstrate our commitment to treating working people with the dignity and fairness that they deserve,” said Mayor Brandon Johnson. “I am proud to see the minimum wage increase and additional protections for workers go into effect this year.

Chicago’s workers and their families are the backbone of our city and they deserve to be paid fairly and valued. These are essential steps to build safe, affordable, and thriving communities.”

The city will also be holding webinars at 10 a.m. on June 10, 10 a.m. on June 12, 2 p.m. on June 24 and 2 p.m. on June 26. For more information, visit chicago.gov/BACPwebinars.

For more information on the labor laws, visit Chicago.gov/LaborStandards.

This article was originally published by ABC7 Chicago.

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