Montana’s Minimum Wage Set to Rise: What You Need to Know

BUTTE, MT - Montana workers, get ready for a change in your paychecks.

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While it’s not a monumental leap, the state’s minimum wage will see an increase on January 1, 2025.

Here’s what this means for workers, how much Montana's minimum wage is increasing, and how it compares to the rest of the nation.

A Brief History of Montana's Minimum Wage

Montana has been making steady adjustments to its minimum wage to keep up with inflation and the cost of living.

In 2023, the minimum wage was $10.10, increasing to $10.33 in 2024. These small, yet meaningful, changes have ensured that workers in Montana don’t fall too far behind as the cost of goods and services steadily rises.

The state’s minimum wage adjustments are tied to the Consumer Price Index (CPI), a measure of inflation. This ensures that the purchasing power of low-income workers remains relatively stable year over year.

How Does Montana Compare Nationally?

While Montana’s minimum wage is higher than the federal minimum of $7.25 per hour, it doesn’t quite match the rates seen in some other states.

For instance, California and Washington lead the nation with minimum wages exceeding $16 per hour. On the other hand, Montana’s rate is more in line with neighboring states like South Dakota, which sits at $11.20.

Despite not being at the forefront of minimum wage rates, Montana’s annual adjustments reflect the state’s commitment to maintaining a livable income for its workers, even as some citizens voice concerns that increase is not enough.

What This Means for Montana Workers

For full-time workers earning minimum wage, the increase brings a slight boost to annual earnings, amounting to roughly $21,944 before taxes (a $458 difference than 2024's minimum wage).

While this doesn’t make Montana a leader in minimum wage rates, many believe it’s a step in the right direction. Increased wages mean more disposable income for workers, which could also benefit local businesses as consumer spending rises.

Additionally, these increases play a significant role in combating wage stagnation and ensuring that Montana’s workforce keeps pace with economic changes.

What’s New for 2025?

Here’s the key detail: starting January 1, 2025, Montana’s minimum wage will rise from $10.33 to $10.55 per hour.

Montana’s minimum wage hike is a small yet meaningful step for workers and the economy. As inflation and living costs evolve, these annual adjustments ensure that paychecks grow, even if incrementally. So while $10.55 might not make national headlines, it marks another chapter in Montana’s commitment to supporting its workforce.