The Department of Labor in Maine shared this week that a minimum wage increase will take effect January 1st, 2025. Minimum wage in Maine is currently at $14.15 an hour and will increase by 50 cents per hour in the new year to $14.65.

Service employees will also see a wage increase as well.

In addition to the minimum wage, the new "tip wage," or service employee minimum wage, in 2025 will be $7.33 per hour. This means that service employees must receive at least a direct cash wage of $7.33 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $14.65 per hour when the direct wage and tips are combined at the end of the week. The amount of tips necessary to qualify as a service employee will increase from $179 per month to $185 per month.

At $14.65 hourly full-time, an employee will be making $30,472 annually. According to recent data, the average median income for a household in Maine is $71,066.

How Does Maine's Minimum Wage Compare to Other States?

If you are an employer looking to pay the least amount to employees, several states have the absolute lowest minimum wage required per federal law. That currently sits at $7.25 hourly, and you will not have to relocate far as New Hampshire is in this category.

Other states that also have the bare minimum wage of $7.25 hourly include Alabama, North Dakota, Tennessee and just about every state in the south and mid-west.

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If you are looking to make more with a minimum wage job, head to California, Washington or even Denver, Colorado, as the municipality minimum wages are the highest in the country. However, the COL (cost of living) in each area nears the top of the priciest list. Los Angeles is currently $19.90 hourly and Denver, Colorado's minimum wage is $18.29 per hour. One city in Washington is over $20.

The Minimum Wage Every Year Since 1938

Here are the minimum wage amounts every year since 1938.

Gallery Credit: Chris Cardenas

19 States Where The Minimum Wage Doesn't Match The Living Wage

According to MIT's Living Wage Calculator, this is what people actually need to make depending on their circumstances per hour.

Fast Food Minimum Wage Is Going Up and So Is The Price On These Menus

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