Ohio’s minimum wage to increase in 2025 for tipped and non tipped workers
Hourly employees at Ohio's minimum wage are getting a small pay bump in the new year. Non tipped workers will increase to at least $10.70 an hour, a .25 cent raise. Tipped workers will increase to at least $5.35 an hour, a .10 cent raise.
“It’s great news for about 300,130 Ohio workers,” Hannah Halbert, Executive Director for Policy Matters Ohio said.
It’s an increase that the state has seen every year since 2006 to keep up with inflation. As workers feel less stress on their wallets, analysts say it can also bring small health and social benefits.
“Economic security leads to things like lower suicide rates, better infant mortality, less firearm homicides,” Rob Moore, a Principal at Scioto Analysis said.
When comparing Ohio's non tipped wages to other states we fall about in the middle of the pay range across the country. According to Paycom.com, 27 states will have a higher minimum wage than Ohio in 2025.
“We also have one of the lowest cost of living anywhere in the country so when you account for that, our minimum wage is in line or ahead of most states,” Steve Stivers, the President & CEO of the Ohio Chamber of Commerce said.
Others feel that statistics shows Ohio is falling behind.
“This is a much needed increase, it’s far from what workers actually need to have the value of minimum wage that their grandparents enjoyed fully resorted,” Halbert said.
Halbert says this year's increase does not provide a livable wage for a single Ohioan. Instead, she wants to see the minimum wage go up to $15 an hour.
But Stivers says if the minimum increases all at once it could have negative impacts for business owners.
“The thing that could hurt businesses is if we were to have a massive jump in the minimum wage,” he said. “...That could have a really big impact especially in the rural areas, small towns.”
If wages increase suddenly, businesses may have to cut staffing numbers in order to reach their bottom line.
Stivers and Halbert both agree the best way to get to $15 an hour is with a phased in process over time.