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Minnesota's minimum wage increases

The bill signed into law by Governor Mark Dayton in 2014 phases in new increases in the minimum wage over several years. This chart provides more details and a timeline describing how the new law will be implemented over the next several years. Starting in 2018, Minnesota’s minimum wage will be indexed to inflation to help ensure Minnesotans’ wages keep up with the cost of living.

More than 288,000 of Minnesota’s lowest-wage workers received a raise on August 1 when the state’s large employer minimum wage rose to $9 an hour.

In April 2014, Governor Mark Dayton signed a bill into law raising Minnesota’s minimum wage for the first time in a decade. This is the state’s second of three annual minimum wage increases. The legislation will increase the minimum wage to $9.50 per hour by 2016.

“Minnesotans who work full-time should be able to earn enough money to lift their families out of poverty and achieve the American Dream,” Dayton said.

Before the legislation took effect, Minnesota had one of the lowest minimum wages in the nation and was one of only four states with a minimum wage below the national rate of $7.25 per hour.

Raising the state’s minimum wage is expected to help lift many Minnesotans out of poverty. Under the previous minimum wage of $6.15 per hour, a single parent with two children working full time earned an annual salary of $12,792 – $7,000 below the poverty line.

Raising the minimum wage to $9.50 per hour will put an estimated $472 million in additional wages in the pockets of Minnesota’s lowest-wage workers each year. Many economists agree that when minimum wage workers get a raise, they often spend those new wages on basic necessities, goods and services. That increase in consumer spending is expected to help local businesses across the state.