Chicago minimum wage to increase again in July

The minimum wage increase and fair workweek changes are effective July 1, 2023.

Photo byEduardo SoaresonUnsplash

Thanks to the yearly scheduled increase, Chicago employees will see a rise in their paychecks in July. As residents deal with insane rent surges and grocery prices that are still at a high, this increase can provide a bit of help.

In 2020, the city's minimum wage increased to $14 per hour for businesses with more than 21 workers. Now, it'll be $15.80. However, employees working at companies with less than 21 workers will receive $15.00 ($13.50 in 2020).

Mayor Brandon Johnson and the Department of Business Affairs and Consumer Protection (BACP) announced the annual increase in the city’s minimum wage and a scheduled enhancement of the Fair Workweek Ordinance requirements on June 6.

Johnson said, “Working people and working families of Chicago deserve to know that their wages will keep pace with inflation and that they can count on an increase in their paychecks every year.”

Critical parts of the press release:

Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. The Chicago minimum wage is tiered for large businesses with 21 or more employees and small businesses with 4 to 20 employees. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower. The minimum wage as of July 1, 2023, will be:

• $15.80 for employers with 21 or more employees (including all domestic workers, regardless of the number employed)

• $15.00 for employers with 4 to 20 employees

• The minimum wage for tipped employees will be $9.48 for employers with 21 or more employees and $9.00 for employers with 4 to 20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers.)