Virginia’s minimum wage will increase from $12 to $12.41 per hour, starting Jan. 1, 2025.
This change is part of the Virginia Minimum Wage Act, enacted in 2020, which aims to adjust wages in line with inflation. The act has previously raised the minimum wage from $7.25 to $9.50 in 2021 and from $11 to $12 in 2023.
Recommended Videos
The adjustment for 2025 is based on a 3.4% increase in the Consumer Price Index for All Urban Consumers (CPI-U), reported by the U.S. Bureau of Labor Statistics in December 2023.
The formula used for this adjustment is $12.00 plus 3.4% of $12.00, resulting in the new rate of $12.41. Future adjustments will follow this same calculation.
In March 2024, Gov. Glenn Youngkin vetoed a bill that proposed raising the minimum wage to $13.50 in 2025 and $15 by 2026. In his veto, Youngkin said the bills would “imperil market freedom and economic competitiveness.”
Federal guidelines list the poverty level at $15,060 for a single-person household and $31,200 for a family of four.
According to recent census data, the median household income in Roanoke is $52,671, with 19.7% of residents living in poverty. In Lynchburg, 17.4% of the population is below the poverty line, while Montgomery County has a poverty rate of 23.8%.
Gov. Youngkin has also proposed eliminating taxes on tips, a decision he claims would return an estimated $70 million annually back to Virginia workers.
“By removing tips from taxable income, it will directly increase the take-home pay of hundreds of thousands of Virginians and give them more buying power, which in turn will improve financial stability, stimulate local economies, and honor the value of their hard work.” Gov. Youngkin said in his release.
