Chicago’s minimum wage will rise to $17.05 an hour starting July 1, under the city’s annual inflation-based adjustment required by its Minimum Wage Ordinance. The increase was announced Monday by Mayor Brandon Johnson and the Chicago Department of Business Affairs and Consumer Protection.
Higher base pay and full city minimum wage for some employment programs
The change does not only mean a higher base wage. Workers taking part in subsidized youth employment and transitional employment programs will, for the first time, earn the full city minimum wage.
Tipped wage stays the same until 2028
There will be no summer change for tipped workers. Their subminimum wage will remain at $12.96 an hour until the next scheduled increase on July 1, 2028. 
Paid leave protections are expanding too
The wage hike comes alongside changes to the city’s paid leave rules. Employees who work at least 80 hours within a 120-day period will be eligible for up to five days of paid leave and up to five days of paid sick leave each year. Starting July 1, workers will also be able to take direct legal action if they believe their rights under the Paid Leave and Paid Sick and Safe Leave Ordinance have been violated.
Fair Workweek coverage is widening
Chicago is also expanding eligibility under its Fair Workweek Ordinance, which requires certain employers to provide predictable scheduling and compensation when work schedules change. Beginning next month, workers in seven covered industries — building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services — will qualify for those protections if they earn $33.85 an hour or less, or $64,945.55 a year or less. The ordinance applies to employers with at least 100 workers globally, or restaurant operators with at least 250 employees and 30 locations.
Johnson says working families deserve fair pay
Mayor Brandon Johnson said Chicago continues to lead on worker advocacy and that the city’s labor policies reflect a commitment to dignity and respect for workers. He added that he is proud to see this year’s minimum wage increase and expanded worker protections take effect, saying working families are the foundation of the city and deserve fair pay and to feel recognized and valued.
