ALABAMA (WDNews) – As the new year approaches, 21 states are set to raise their minimum wages on January 1, 2025, benefiting millions of workers nationwide. States like California, Illinois, and New York will see their wage floors rise, with California’s reaching $16.50 per hour.
However, in Alabama, the minimum wage remains unchanged at $7.25 per hour—the same as the federal minimum, which hasn’t increased since 2009. This stagnation is particularly impactful given that the Massachusetts Institute of Technology’s Living Wage Calculator estimates a livable wage in Alabama to be $13.77 per hour for a single adult without dependents.
Alabama is among five states, including Louisiana, Mississippi, South Carolina, and Tennessee, that have not adopted a state minimum wage, defaulting to the federal rate. This means that while workers in other parts of the country will see their paychecks grow in the new year, many Alabamians will continue to earn wages that may not keep pace with the rising cost of living.
The Economic Policy Institute notes that when adjusted for inflation, the federal minimum wage is at its lowest value since 1956, underscoring the growing disparity between stagnant wages and increasing living expenses.
As neighboring states implement wage hikes, the conversation around Alabama’s minimum wage continues, with advocates calling for adjustments to better support workers across the state.