There is great news coming this July for thousands of workers and employees across the USA. Workers will now be able to see an increase in their minimum wages starting from July 2025. Many states, including Illinois, are having a hike in the minimum wage for workers.
With this, there are new laws implemented that have been in effect since 1st July 2025, like there are new rules for single-use plastics, and also some additional taxes on things like gas, vaping, and also on ban on single-use plastics.
Illinois Minimum Wage Increase July 2025
Over the past few years, there have been discussions for raising the minimum wage in states of the US due to the rising trend of inflation over the past few years. It is always a topic of debate as to how a person who is earning minimum wages will be able to afford the standard of living required to live a normal life. For the past few decades cost of everything, including rent, groceries, and other expenses, has been skyrocketing, and with time, every other expense is also increasing.
The decision to make the minimum wage higher was very necessary and will be helpful for those workers who have been facing financial and economic issues, even leading a simple life. Every year, Chicago’s minimum wage increases on July 1st, and this year the minimum wage has gone up to $16.60 per hour for those employers who have more than 4 employees working under them, and for tipped workers, the minimum wage has increased up to $12.62 per hour.
These minimum wage increases are part of the ordinance that was approved in 2023, the One Fair Wage Ordinance. It was made to bring the tipped wages up and also to do the same for minimum wages for all the workers in the city.
Minimum Wage Increase in Illinois in July 2025: Overview
| Article on | Minimum Wage Increase in Illinois in July 2025 |
| Country | United States of America |
| Department | Illinois Department of Labor |
| Minimum Wage Increase | $16.60 – standard workers$12.62- tipped workers |
| Category | Finance |
| Official website | labor.illinois.gov |
Importance of minimum wages and why it is necessary to increase it over time
Minimum wages are the minimum remuneration that an employer should provide to their wage earner for the work they have done in the duration of a given time, and the amount cannot be reduced by any situation, be it a collective agreement or an individual contract. The main aim of having a minimum wage is to protect fellow workers from unjustly low pay.
This law makes sure that every worker working under an employee receives their share of the progress the company or the organisation is making. Minimum wages can also be seen as a policy that can help in overcoming poverty and reducing inequality. If the minimum wage is set, there is a chance that the income gap between a man and a woman will reduce over time.
Talking about Chicago, Illinois, from July 1, 2025, the minimum wage has been increased for the different strata in the working class. The minimum wage increase depends on the employer’s position and the number of people working under them. These are the changes that have in effect from the month of July.
- The minimum wage for the city has been increased to $16.60 per hour. This is for the standard employees.
- For tipped workers, the minimum wage has been increased to $12.62
- There is a new payout system in which all the employers who have 50-100 people working under them will now have to pay all the accrued and unused paid leaves until the termination of an individual’s employment, up to 56 hours.
- Every organisation working in the state of Illinois, mainly in Chicago, will have to, by law, follow the updated minimum wage. And with that also follows a fair workweek and provides paid leaves to their employees and workers.
Benefits of increased minimum wage rates
Before understanding the value of an increased minimum wage rate, one should understand why the minimum wage rate was established. The minimum wage rate was implemented so that no one could exploit the workers working under them. It is the lowest hourly rate that an employer has to pay to their workers, defined by the law.
- In the USA, it has been in effect since 1938, and at that time, minimum wage was $0.25 per hour. With time, wages have increased due to changes in the economy and inflation.
- A minimum wage will make sure that workers who are compensated with low wages can improve their standard of living and can meet their daily basic requirements.
- Higher wages boost the morale of an employee and also increase their productivity towards their work. It is noted that it helps them to stay motivated and engaged in their particular job.
- It helps in decreasing the turnover with time, as happy employees will work with their whole heart, and they will intend to stay for a longer time. Thus, it will reduce the time wasted on hiring and training.
- Minimum wages make sure that the distribution of resources and income is distributed equally in society, and they also help in reducing the class gap.
Other law changes in Illinois from July 1, 2025
- Tax increase on Tobacco and Vape products – there has been an increase in the taxes for products such as vapes, cigars, nicotine packets, and all other products that contain tobacco. The tax increase has been implemented since July 1, and there is a 30% increase (15% to 45%). And for cigarettes, people will see $1 increase for every pack. This tax increase is estimated to create around $30 million in revenue in the state.
- Increase in Gas Tax – taxes for gas consumption are also increased from 1st July 2025, and there is a chance that the taxes will increase time to time by June next year. The tax on Gasoline will be $0.483 each gallon from now on. Previously, it was $0.47 each gallon. And as of diesel, the tax has increased from $0.545 to 0.558 in 2025.
- Ban on single-use plastic bottles – this change is mainly for the hospitality sector, and according to the law, hotels that have more than 50 rooms cannot provide single-use plastic bottles, be it shampoo, soap, or any other products. This law has already been in effect since January 1, but hotels were given time till July 2025.
| Official Website | Click Here |
| Homepage | BlackSea-Commission.org |
In a state with some of the highest taxes this is pointless. Millions will still struggle. Tax hike in disguise. What a poophole state.