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It’s official—New York sets the new minimum wage for 2026 and how it affects employees, businesses, and large companies

by Sandra V
December 11, 2025
It's official—New York sets the new minimum wage for 2026 and how it affects employees, businesses, and large companies

It's official—New York sets the new minimum wage for 2026 and how it affects employees, businesses, and large companies

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New York is changing its minimum wage, and many people want to know all about this: how much money it will be, why it’s changing, and how it will affect workers. The thing is that this state has different rules in comparison to the rest of the country, since there’s not just only one minimum wage, but two depending on the place you live or work. So, let’s explain every detail about how New York handles the minimum wage.

Current New York minimum wage

In 2025, the New York minimum wage had already significantly increased. Since January 1 of this year, workers receive different amounts of money depending on where they are:

  • In New York City, Long Island, and Westchester County the minimum wage changed to $16.50 per hour.
  • In the rest of New York state the minimum wage increased to $15.50 per hour.

This difference exists because the cost of living is not the same. Living and working in New York City can be way more expensive than in other parts of the state, which is why the law sets separate minimum wage rates.

Even though these amounts were really good, there will be another increment confirmed by next year.

Confirmed minimum wage increment by 2026

In 2023, the office of Governor Kathy Hochul announced that the minimum wage would automatically increase again on January 1, 2026. The increase will be 50 cents per hour for both wage zones in the state. This means:

  • New York City, Long Island, and Westchester County: the minimum wage will rise from $16.50 to $17.00 per hour.
  • Rest of New York State: the minimum wage will rise from $15.50 to $16.00 per hour.

In both cases, these amounts will be double the federal minimum wage, that’s still $7.25 per hour and it hasn’t changed since 2009. These 2026 rates are already confirmed and will apply to all workers covered by the state’s minimum wage laws.

After 2026

Even though the increment of 50 cents is confirmed by 2026, that figure won’t continue in the following years. However, this doesn’t mean the minimum wage will stop increasing. From 2027, increments of the New York minimum wages will be based on inflation, so workers do not lose purchasing power if prices keep rising.

To determine these increments, New York will use the Consumer Price Index for Wage Earners and Urban Office Workers (CPI-W) for the Northeast region. This index measures how prices change over time.

Basically, if inflation rises, the minimum wage goes up; and if inflation slows down, the increase will be smaller. So, this approach helps make sure the minimum wage keeps up with the real cost of living in New York.

What to do if you don’t receive the increment

We should also mention that workers earning the minimum wage should always see the updated rate reflected in their paychecks. If they do not—whether in 2025, 2026, or in future years—they have the right to report the issue by: filing a wage complaint through the New York State Department of Labor website, or calling 833-910-4378 for assistance.

So…

Understanding how the minimum wage works helps you know what you should be earning and when to expect new rates. And if something doesn’t look right on your paycheck, you’re not alone—New York gives you clear ways to speak up and get help.

As the cost of living keeps shifting, these yearly adjustments aim to give workers a fairer chance to keep up. So if you’re working in New York, these changes are meant to support you, protect your earnings, and strengthen your financial future one step at a time.

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