Minimum wage in Rhode Island raised through 2027

Rhode Island is set to raise its minimum wage over the next two years after passing legislation on August 4, 2025, as reported by Rhode Island Current. 

The minimum wage rates will be updated as follows:

• US$16.00 per hour starting January 1, 2026 (up from the current US$15.00)
• US$17.00 per hour starting January 1, 2027

These wage increases, signed into law by Governor of Rhode Island, Daniel McKee, are expected to benefit approximately 50,000 Rhode Islanders currently earning the state’s minimum wage.

Supporters of the new law say the higher wages will help workers keep up with the rising cost of living while keeping Rhode Island economically competitive with neighboring states.

Rhode Island Minimum Wage Background

The new law is part of a series of annual minimum wage increases in Rhode Island instigated by a law passed in 2021 to raise the wage from US$11.50/hour to US$15.00/hour over four years.

Earlier in 2025, lawmakers considered continuing $1-per-year increases to reach $20 an hour by 2030, but the plan was scaled back due to economic uncertainty and concerns from business groups.

Concerns centered on the possibility that higher wages could raise costs for small businesses, potentially resulting in job cuts, reduced hours, price increases, or investments in automation to replace lower-wage workers.

The Rhode Island Business Coalition also noted that the state already has the seventh highest minimum wage in the country, higher than the federal minimum wage that is currently at US$7.25.

Supporters countered that the policy would help reduce poverty, improve health outcomes, and strengthen family well-being by ensuring more predictable income growth.

Additional Minimum Wage Increase Proposals 

Separate proposals to raise the tipped minimum wage for hospitality workers in Rhode Island remain under review.

Suggested increases included a raise to US$6.75/hour immediately or gradually to US$15/hour by 2031 from the current rate of US$3.89/hour, which has not increased since 2017.

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