Connecticut minimum wage to rise to US$16.94 in 2026

Connecticut’s minimum wage is set to increase from US$16.35 to US$16.94 per hour on January 1, 2026, as announced in a press release by the State of Connecticut. 

The change is said to affect an estimated 160,000 to 200,000 workers. 

The new rate will make Connecticut one of the highest minimum wages in the United States, among states like Washington ($17.26) and California ($16.90).

It also far exceeds the federal minimum wage, which has remained at US $7.25 since 2009.

How the Minimum Wage is Adjusted in Connecticut

Minimum wage change in Connecticut is mandated by Public Act 19-4.  Signed into law in 2019, it requires the state’s rate to be recalculated for inflation annually using the U.S. Department of Labor’s Employment Cost Index (ECI).

Connecticut’s Public Act 19-4 set fixed annual increases from $11 in 2019 up to $15 in 2023. Starting January 1, 2024, all future minimum wage increases were required to be tied to the ECI, with new rates taking effect each January.

As such, the new increase of US$0.59 per hour is based on a 3.6% rise in the federal ECI from July 2024 through June 2025.

The Employment Cost Index (ECI) is used to track how much employers’ labor costs change over time. Both wages and benefits are included, and a fixed group of jobs is used so the changes show true cost increases, without being affected by workers moving between roles or industries.

Minimum wage reviews in the state must be completed by October 15 each year, after which adjustments are announced by the state labor commissioner.

Concerns Over Rising Labor Costs

While state officials expect higher wages to support families and boost local spending, concerns have been raised that the increases could harm business growth and pressure employers to raise pay for higher-earning staff.

Such concerns are backed by the fact that labor costs and workforce retention remain major challenges for companies across the state, as reported by the Connecticut Business and Industry Association (CBIA).“Upward wage pressure from the minimum wage increase is also seen as potentially adding to the already high cost of doing business in Connecticut.

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