New data from the US Bureau of Labor Statistics shows Maine’s minimum wage will increase by 50 cents per hour in 2025 to keep pace with increased costs of living. MECEP estimates this increase will boost the wages of 96,000 workers in Maine who are earning at or just above the new minimum wage.
Maine’s minimum wage law, passed by citizens’ initiative in 2016, automatically updates the minimum wage each January 1 to reflect increased cost of living. To do so, it uses the annual percentage change in the Consumer Price Index for Clerical Workers in the Northeast Region between August of each year. Today, the BLS announced that index increased by 3.6%, which means that on January 1 Maine’s statewide minimum wage will increase from the current $14.15 per hour to $14.65. For workers who are paid primarily in tips, the base minimum wage paid by an employer will increase from $7.08 per hour to $7.33.
For a full-time, year-round worker, the increase is equivalent to slightly more than an extra $1,000 a year in wages.
The cities of Portland and Rockland have their own minimum wage ordinances which currently set a floor of $15 per hour. Both are indexed to inflation using the Consumer Price Index for All Urban Consumers, which rose 3.4%, meaning the minimum wage in both cities will rise to $15.50 on January 1.
The number of workers impacted statewide includes 37,000 workers directly impacted — those who earn below the new minimum wage and will see a full 50 cent per hour increase — plus 50,000 indirectly-impacted workers who earn up to 15% more than the minimum wage and will see a smaller increase in their hourly rate as employers stay competitive with the new minimum wage. Finally, around 9,000 tipped workers in the state will see a small increase to their base wage.
This number represents around one in six employees in Maine, which is one of the smallest impacts of a minimum wage increase in the state in years. This is because wage growth has been unusually strong for Mainers in low-income occupations in recent years, resulting in fewer Mainers than ever earning at or near the state minimum. Nonetheless, the fact that tens of thousands of workers are impacted demonstrates the need to maintain a robust minimum wage so that no one is left behind.
