Oregon Workers Wait for Wage Hike as Washington’s Minimum Wage Jumps on January 1
As many states increase the minimum wage from January 1, Washington state will rise to $17.13 per hour, while Oregon will be playing catch-up when the state’s minimum wage increases on July 1.
Washington State Minimum Wage Increases
The 2025 minimum wage in Washington state is $16.66 per hour, which will increase to $17.13 on January 1, 2026.
However, jurisdictions have higher Local Minimum Wage Rates. In Burien, for example, the minimum wage is $21.16/hour (500 or more employees) and $20.16/hour (21-499 employees).
Beginning mid-September each year, based on the federal Consumer Price Index (CPI), L&I will also make a cost-of-living adjustment to the existing minimum wage.
Oregon Minimum Wage Increase
Oregon is on a different clock– its minimum wage is set by zone and updates July 1, not January 1, so Oregon workers are sitting on the 2025-26 wage rates their neighbors (and many other states) change on New Year’s Day.
This creates pressure on border employers and workers in the months after increases in many states, but before Oregon’s July 1 increase.
The minimum wage in New York state is set to increase by 50 cents on January 1. The state’s minimum wage will increase from $16.50 an hour to $17 per hour. In contrast, Washington, D.C.’s highest minimum wage will take effect in January at $17.95 an hour.
In 2016, Oregon’s minimum wage was set by Senate Bill 1532, which established increases on July 1 each year through 2022. Currently, Oregon’s three tiers for July 1, 2025, are $16.30 (Portland metro), $15.05 other parts of the state), and $14.05 (non-urban). The next change is tied to the CPI adjustment on July 1, 2026.
| Place | Effective date | Hourly minimum wage | Notes |
|---|---|---|---|
| Washington statewide | Jan 1 2026 | $17.13 | Statewide minimum wage update |
| Oregon: Portland metro | Jul 1 2025 to Jun 30 2026 | $16.30 | Higher tier zone |
| Oregon: Standard | Jul 1 2025 to Jun 30 2026 | $15.05 | Most of the state |
| Oregon: Nonurban | Jul 1 2025 to Jun 30 2026 | $14.05 | Lowest tier zone |
| Burien (example local WA rate) | 2025 local rates | $21.16 / $20.16 | Local ordinances can set higher wages |
After reaching a peak of 7.4% to 7.3% in 2017 and 2018, with over 160,000 minimum wage jobs each year, minimum wage jobs in Oregon accounted for about 5.4% of total jobs covered by Unemployment Insurance between 2000 and 2024. But this has been declining.
Between July 1, 2024, and June 30, 2025, roughly 4.0% (89,800) of all jobs (2,229,100) paid minimum wage or less in Oregon by the third quarter of 2024. In addition, 1.9% (42,300) of all jobs paid between the 2024 and 2025 minimum wages. Around 132,100 jobs could be affected by the 2025 minimum wage increase.
Sources: Oregon Employment Department / QualityInfo (Minimum wage jobs in Oregon, posted June 2025)
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The Oregon Minimum Wage Rate Summary is on the website of the Oregon Bureau of Labor and Industries.