The Raise the Wage Act of 2025 gradually increases the federal minimum wage from the current level to $15.50 per hour over four years, then adjusts it annually based on growth in median worker wages. The bill affects all workers covered by federal minimum wage law, with phased increases starting at $9.50 per hour in year one, reaching $15.50 in year five, and rising automatically each year thereafter. The legislation also raises the minimum wage for tipped workers and young workers, eventually eliminating separate lower wage rates for these groups, while phasing out the practice of paying workers with disabilities sub-minimum wages over a five-year period with government transition assistance. No specific new federal funding is appropriated in the bill; it operates by modifying existing wage requirements in labor law, with the increases taking effect in the third month after the bill is enacted.
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