The minimum wage hike marks the fourth consecutive year of increases
Florida saw another increase in its minimum wage, which rose to $13 per hour for non-tipped employees and $9.98 for tipped employees on September 30, 2024. The wage hike is part of an ongoing series of increases approved by voters in 2020 as part of a constitutional amendment spearheaded by prominent Orlando attorney John Morgan. The amendment aims to incrementally raise Florida’s minimum wage to $15 an hour by 2026, a move that’s been widely celebrated by workers across the state.
Steady minimum wage hikes since 2021
The 2020 amendment set a clear timeline for wage increases in motion, designed to help Florida’s minimum wage keep pace with the rising cost of living. The first increase occurred in 2021 when it jumped from $8.65 to $10 per hour. Since then, the rate has risen by $1 each year: $11 in 2022, $12 in 2023, and most recently, $13 in 2024.
The next scheduled increase will bring it to $14 on September 30, 2025, with the final step hitting the $15 mark in 2026. From there, minimum wage increases will be tied to inflation, calculated based on the Consumer Price Index (CPI), which measures the cost of goods and services for urban wage earners.
For tipped employees, whose minimum wage had long lagged behind their non-tipped counterparts, the amendment brought similar improvements. In 2024, Florida’s minimum wage for tipped workers increased to $9.98 an hour, up from $8.98 the previous year. Although tipped employees generally rely heavily on gratuities, this wage boost ensures a more stable base pay for those working in Florida’s bustling service industry.
These increases are significant when compared to the federal minimum wage, which has remained stagnant at $7.25 per hour since 2009, with tipped employees earning as little as $2.13 an hour. Florida’s efforts to lift wages for both tipped and non-tipped workers have outpaced the federal standard, making the state a leader in addressing wage stagnation.
Florida’s path toward $15 by 2026
The gradual increases in Florida’s minimum wage have been part of a broader effort to address wage disparities in the state. By 2026, Florida will join other states such as California, New York, and Washington in offering a $15 minimum wage. The current timeline ensures that workers benefit from regular wage boosts while businesses have time to adjust to the higher labor costs.
John Morgan, the Orlando lawyer who led the 2020 campaign to raise it, has long argued that $15 is a more appropriate wage for Florida workers trying to meet the rising cost of living. After reaching the $15 mark in 2026, Florida’s minimum wage will increase annually based on the inflation rate, as determined by the CPI. This adjustment ensures wages will continue to rise in line with the cost of living.
While Florida’s incremental minimum wage increases have been celebrated by many, they have sparked debates about what constitutes a true “living wage.” According to the Massachusetts Institute of Technology’s (MIT) Living Wage Calculator, the actual cost of living in Florida far exceeds the state’s minimum wage.
In 2024, MIT calculated that a single adult without children needs to earn $22.43 per hour to afford necessities like housing, food, and health care. For families, that figure jumps to $37.27 for a single parent with one child and $58.76 for a single parent with three children.
These figures highlight the gap between the minimum wage and the actual cost of living, prompting continued discussion about the need for further wage reforms to ensure that all workers can afford to live in the state.
Once Florida’s minimum wage hits $15 in 2026, it will return to the previous method of annual cost-of-living adjustments tied to the CPI. This ensures that wages will continue to rise as inflation increases, protecting workers from the potential erosion of their purchasing power over time.
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