Although there is a federal minimum wage in the U.S., each state also has its limits; in the case of the “lone star” good news could be on the horizon
The minimum wage is often a topic of constant debate in the United States due to the fact that it has been more than 15 years since the federal base has been updated. The different states have the power to set their own rates, but in some cases this has not happened until now. This is the case in Texas, although several of its cities have plans to reach new agreements.
According to the U.S. government, Texas is governed by the federal minimum basic hourly rate, which is US$7.25. By 2025, the minimum wage is scheduled to remain at that amount in the Lone Star state. It has been that way since it became law in 2009. Also, when an employee receives tips for his or her work, the minimum wage in Texas drops to US$2.13 per hour.
Despite the statewide wage, different cities began making modifications. This is what will happen in major Texas metropolises with the minimum wage in 2025.
In Forth Worth, for example, advocates are pushing for a $20 minimum wage for city employees, which pays its employees $15.45. While they are not making progress, they have a coalition advocating for this change.
In Austin, the wage will be higher in 2025.
As stated on the Austin government’s website, the City of Austin’s living wage is $21.63 per hour and went into effect as of October 2024, continuing in 2025. This was the result of a decision by the City Council to increase the living wage for the City of Austin. This wage applies to regular and temporary city employees.
Houston to implement an increase
In Houston, the projected increase for 2025 will bring the minimum hourly wage to US$15.04. This decision seeks to primarily alleviate financial hardship for workers in key sectors such as hospitality and retail, which have been particularly hard hit by wage stagnation. The new amount will represent more than double the federal standard, a significant adjustment in one of the state’s largest cities, which has also seen a considerable increase in the cost of living.
Dallas minimum wage
As indicated in Work Stream’s wage index, the minimum wage in Dallas has not changed since 2009. However, in 2022, the Dallas City Council approved a plan to gradually increase the minimum wage to $15 per hour by 2025. It is not yet clear whether it will ever be implemented.
San Antonio’s minimum wage in 2025
The current minimum wage in San Antonio is the same as the federal minimum wage. That is, all workers, regardless of age or occupation, are entitled to earn at least $7.25 per hour. However, there are proposals to change it.
One would approve the minimum wage at US$15 per hour for a period of several years. Another proposal seeks to move to US$10 per hour immediately. The minimum wage in San Antonio was last adjusted in 2009.