Virginia Minimum Wage to Increase to $12.41 in 2025

Starting January 1, 2025, Virginia’s minimum wage will rise to $12.41 per hour, an increase from the current rate of $12.00. This adjustment, set by the Virginia Department of Labor and Industry (DOLI), reflects a 3.4% rise in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the U.S. Bureau of Labor Statistics.

The change is part of a formula established by the Virginia Minimum Wage Act, which ties annual adjustments to the CPI-U, a measure of inflation tracking the cost of goods and services purchased by urban consumers. Under the formula, the current minimum wage rate is increased by the percentage change in the CPI-U. For 2025, this resulted in a calculation of $12.00 + ($12.00 × 0.034), equaling $12.41.

The new rate will remain in effect until January 1, 2026. Employers covered by the Virginia Minimum Wage Act are required to pay employees at or above this rate.

A Framework for Future Adjustments

Annual adjustments to the minimum wage will continue under the same formula unless the Virginia General Assembly enacts new legislation modifying scheduled rates. This system ensures that the minimum wage keeps pace with inflation, providing workers with some protection against rising living costs.

What Employers and Workers Need to Know

Employers must adhere to the updated rate beginning January 1, 2025. Failure to comply could result in penalties under state labor laws.

For further information or clarification, the Virginia Department of Labor and Industry’s Division of Labor and Employment Law can be reached at (804) 786-2706 or laborlaw@doli.virginia.gov.