Oregon raises minimum wage across all regions from July 1

Oregon has raised its minimum wage rates on July 1, 2025, with rates varying by location, as reported by USA today.

The minimum wage rates were updated as follows:

• US$16.30 per hour in the Portland metro area, up from US$15.95
• US$15.05 for the standard state minimum wage rate, up from US$14.70
• US$14.05 in non-urban counties, up from US$13.70

These increases were implemented under the state’s tiered minimum wage system and reflect the annual adjustment process tied to inflation.

These changes reflect a broader national wave of mid-year minimum wage increases in the US, including those in Alaska and multiple cities in Washington state. 

Such wage increases in 2025 are projected to benefit over 880,000 workers across the US, based on estimates from the Economic Policy Institute.

Oregon Minimum Wage Background

The minimum wage in Oregon is generally set according to three rate categories: the Portland metro area, a standard minimum wage rate applied across the state, and a lower rate for non-urban counties.

Since July 1, 2023, the state has indexed the standard minimum wage to inflation using the Consumer Price Index (CPI) published by the US Bureau of Labor Statistics.

As such, the Portland metro rate is fixed at US$1.25 above the standard rate, while the non-urban rate is set at US$1 below it.

The Consumer Price Index (CPI) tracks how the cost of common goods and services changes over time. It’s commonly used to calculate inflation.

The U.S. Bureau of Labor Statistics (BLS) is a federal government agency that collects, analyzes, and publishes economic data, including employment, wages, and prices. The BLS calculates and releases the CPI each month.

Adjustments are calculated annually by April 30 and take effect on July 1 each year, ensuring wage growth that reflects changes in the cost of living.

Oregon’s minimum wage is more than double the federal minimum of US$7.25 per hour, keeping it among the highest in the nation.

State law also requires premium pay after 40 hours in a week for most jobs, and after 10 hours in a day for certain industries such as nonfarm canneries, driers, packing plants, mills, and factories.

Minimum Wage Trends in the US

Early in 2025, minimum wages were raised in 21 states and 48 local areas. By the end of the year, minimum wage rates are expected to be increased in a total of 88 jurisdictions across 23 states.

Further minimum wage increases were implemented in July 2025 across numerous municipalities and counties nationwide, as well as major cities such as Los Angeles, San Francisco, and Chicago.

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