Alaska’s minimum wage raised to US$13 from July 1

Photo by Kathrine Coonjohn on Unsplash

Alaska’s minimum wage was raised from US$11.91 to US$13 per hour on July 1, 2025, as part of a multi-step plan to reach US$15 by 2027, as reported by USA today.

 

The minimum wage change is part of Ballot Measure 1, which also established paid sick leave and other worker protections.

 

Ballot Measure 1 is a voter-approved law in Alaska that took effect on July 1, 2025, it raises the minimum wage, establishes paid sick leave, and bans mandatory employer meetings on political or religious topics.

 

Minimum wage hikes were also scheduled for July 1 in other states such as Oregon and Washington.

 

An estimated 880,000 workers across Alaska, Oregon, and Washington were expected to benefit from the wage increases, according to the Economic Policy Institute.

 

Alaska Minimum Wage Background

 

Since 2014, Alaska’s minimum wage has been set under the Alaska Wage and Hour Act, which governs wage and hour standards across the state. Through this law, the minimum wage rose from US$7.75 to US$11.91, with annual adjustments based on inflation.

 

In 2024, voters approved Ballot Measure 1, which provided larger and fixed increases. Under this measure, the rate was raised in July 2025, with further scheduled increases to US$14 in 2026 and US$15 in 2027, followed by annual inflation-based adjustments starting in 2028.

 

The measure also requires that Alaska’s minimum wage remain at least US$2 higher than the federal rate, which is currently US$7.25 per hour.

 

Paid Sick Leave Provisions

 

Ballot Measure 1 also requires most employers in Alaska to provide paid sick leave to full-time and part-time employees, with a few exemptions such as certain seasonal workers, minors, and some agricultural and domestic workers.

 

Nationwide Minimum Wage Trends

 

The increase was aligned with a broader national wave of earlier increases in the US in January 2025, when 21 states and 48 localities raised their minimum wage.

 

In total, 88 jurisdictions across 23 states were expected to implement wage hikes by the end of the year.

 

Alongside these jurisdictions, minimum wage increases are also being implemented this summer in 12 additional cities and counties, including Chicago, Los Angeles, and San Francisco.

 

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