Chicago Boosts Minimum Wage to $17.05, Expands Worker Benefits

Thousands of Chicago workers will see their paychecks increase as the city's minimum wage rises to $17.05 per hour on July 1. This annual adjustment, tied to the cost of living, applies to most employees at businesses with four or more workers.

For the first time, individuals in subsidized youth and transitional employment programs will receive the same minimum wage as other covered workers. Additionally, tipped workers will see their base pay increase to $12.96 per hour, with this rate remaining unchanged until the next scheduled update.

Mayor Brandon Johnson stated that Chicago continues to lead in advocating for workers. The new minimum wage surpasses the state of Illinois's minimum wage, which reached $15 per hour in 2025. Beyond wages, Chicago is introducing new benefits, including five days of paid leave and five days of paid sick leave for employees who work at least 80 hours within a 120-day period.

The city is also expanding the Fair Workweek Ordinance, which mandates predictable schedules in industries like healthcare, hospitality, manufacturing, and retail for workers earning $33.85 per hour or less. Employers must provide advance notice of schedules and compensate for last-minute changes. The eligibility thresholds for this ordinance are also being updated.