All over the United States of America, many states and cities have opted to raise the minimum wages of daily wage workers and employees. In the state of California, from July 1, 2025, the new minimum wage has been in effect according to the guidelines prescribed by the authorities.
People who are residing and working in organizations in the state of California will be able to see the effect of the new minimum wage on their salary structures starting in July onwards.
California Minimum Wage Increase July 2025
California becomes the initial state in the USA to increase the minimum wage in 2025. Effective from July 1, 2025, the workers and employees will see a raise to $16.50 per hour. However, the new rule of California does not allow employers to take the tipped credit, and because of that, there is no separate rate assigned for the tipped workers. The minimum wage is set by any country so that people are not exploited by their employers, and they receive the actual pay they are entitled to receive.
As we all know, California is one of the most happening and lively states in the USA, be it the beaches or the craze of Hollywood. But with that, it is one of the most expensive states to live in terms of basic utilities such as housing, rent, food, and health. Looking over the overall living expenses, the minimum wage increase was a necessity. All who are working and living in the state will get a sigh of relief from the wage increase.
Minimum Wage Increase in California in July 2025: Overview
| Article on | Minimum Wage Increase in California in July 2025 |
| Country | United States of America |
| Department | California Department of Industrial Relations |
| Minimum Wage Increase | $16.50 |
| Category | Finance |
| Official website | dir.ca.gov |
Statewide Minimum Wage in California 2025
For the current year 2025, the state of California has announced the minimum wage to be $16.50 per hour that an individual works. It is exactly a 50% increase from what it was in 2024. This raise in minimum wages can be said as a decent raise because if one sees the raise in 2017, employers had to pay at least $10.50 per hour if their organization for business had over 25 employees working under them. Currently, the minimum wage for 2025 is determined at the minimum of $16.50 per hour, which an employer has to provide to its employees. It is exactly the raise that has gone up by $6.
When the panel for the minimum raise in the state was discussed, many demanded that the minimum wage be at $18 per hour, but around half of the voters rejected the notion. But there are many cities and specific industries across the state that have already been paying more than what the minimum wage has been set for.
The table below has some of the major cities in California and the minimum wage set in the particular cities:
| Major Cities in California | Minimum wage per hour |
| Alameda | $17.46 per hour |
| Emeryville | $19.90 per hour |
| Los Angeles (city) | $17.87 per hour |
| Berkeley | $19.18 per hour |
| Fremont | $17.75 per hour |
| Pasadena | $18.04 per hour |
| Santa Monica | $17.81 per hour |
| Milpitas | $18.20 per hour |
| San Francisco | $19.18 per hour |
| Los Angeles County | $17.81 per hour |
Minimum Wages For Exempt Employees in California 2025
Exempt employees are considered those employees who are not eligible for any overtime pay and do not have the qualifications under the Minimum Wage Act. They are compensated on a planned salary basis and not on per per-hour basis. They are mainly those professionals who are in the administrative, outside sales, all computer-related fields, or at the executive level.
From the 1st of January in the state of California, the minimum salary specifically for exempt employees was increased to $68,640 per year, and if counted on per per-month basis, it had to be $5720 per month. All the computer or software employees will be considered expe,t if they are compensated either $56,97 per hour or $9888.13 per month pr $118,657 per year.
Fast food sector minimum wage
People who are working in the fast food sector in California have been receiving the minimum wage of $20 per hour since April 2024, as per AB 1228 and AB 610. The California Fast Food Council is currently having a discussion over increasing 70 cents in the minimum wage for fast food employees in the upcoming months. But as of now, it is $20 per hour in the current year. If you are an individual working in the fast food sector, make sure to keep up-to-date on the minimum wage raise.
Health Care Employees’ Minimum Wages in 2025
Effective from the first of July 2025, many healthcare facilities will see a rise in the minimum wage rates. It will depend on the type of healthcare facility and the type of employer an individual is working for.
| Type of Healthcare Employer (California) | Minimum wage per hour |
| Hospitals or Health Systems with more than 10,000 or more full-time employees and skilled nursing facilities | $24 |
| Covered healthcare facilities run by large counties (those that are covered and have > 5 million people) | $24 |
| Hospitals with 90% or more of their patients paid for by federal health insurance, like Medicare or Medi-Cal | $18.63 |
| Dialysis Clinics | $24 |
| Covered healthcare facilities are present in rural areas | $18.63 |
| Covered Health Care Facilities run by small counties (< 250000 people) | $18.63 |
Final Thoughts
If you are a resident and a working professional in the state of California, make sure you know the minimum wages set for the current year, and also check with your employer to see that you are not being underpaid. For more updates rely on definite and official channels only.
| Official Website | Click Here |
| Homepage | BlackSea-Commission.org |
