St. Paul raising minimum wage in 2025; some workers will earn $15.97 per hour

Minimum wage increases are coming to St. Paul in 2025, with the biggest raises coming to those who work for the city's large employers.

The city announced the increases on Friday, noting they're the result of a recent local ordinance calling for gradual hikes until all workers are making at least $15 by 2027. Currently, the city sets minimum wage depending on the size of the business.

You can see the breakdown of the pay tiers and effective dates in the graphic below:

Effective January 1, 2025, employees of "Large" and "Macro" businesses — with the latter defined as those employing more than 10,000 people — will make $15.97 per hour.

This is a 40-cent raise over what they're making now, $15.57/hour.

Other workers will have to wait until July 1, 2025 for their pay raises to kick in.

Those who work at "Small" businesses (6-100 employees) will make $15.00/hour, a dollar increase over their current minimum wage. Those working for "Micro" businesses (five or fewer employees) will also see their pay increase by a dollar, to $13.25/hour.

The pay raises will apply to full-time, part-time, temporary and paid on-call employees, regardless of immigration status, the city says. The ordinance does not cover independent contractors or workers in the Minnesota Extended Employment Program, which helps find work for those with significant disabilities.

Meanwhile, Minneapolis will also be raising its minimum wage on January 1. However, the new pay rate — also $15.97 an hour — will apply to workers at both small and large employers, according to the city.

The state minimum wage is set to increase to $11.13 an hour in 2025.

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