Increase to minimum wage in Vermont coming on Jan. 1. How it compares to other states

The Vermont minimum wage is set to increase on Jan. 1, 2025.

The minimum wage will increase to $14.01 per hour, from $13.67 per hour, according to the Vermont Department of Labor. The tipped minimum wage, which is the lowest amount an employer can pay a tipped employee per hour of work, will also increase, to $7.01 per hour, from $6.84 per hour.

Under legislation enacted in 2020, Vermont’s minimum wage is raised each Jan. 1 by 5% or by the percentage increase in the Consumer Price Index, whichever is smaller.

The Department of Labor defines the state’s tipped minimum wage as a law that “allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift. In cases where the employee does not receive enough in tips during a workweek to equal the standard minimum wage per hour, the employer is required to pay the difference in order to ensure the tipped wage employee is compensated at the non-tipped minimum wage amount. ”

Among Vermont’s bordering states, the minimum wage in New York in 2024 was $15 across the state, and $16 in New York City. The Massachusetts minimum wage is also $15 per hour.

In New Hampshire, the statewide minimum wage in 2024 was $7.25 per hour, as New Hampshire follows the federal minimum wage.

Sydney P. Hakes is the Burlington city reporter. Contact her at SHakes@gannett.com.