- The Chicago minimum wage is $17.05 an hour (employers with 4 or more employees), effective .
- That is $2.05 above the Illinois state rate of $15.00 and $9.80 above the federal $7.25.
- 3 tiers apply: employers with 4 or more employees $17.05; tipped workers, employers with 4 or more employees (cash wage) $12.96; domestic workers (any employer size) and youth workers $17.05.
- The next change is : an indexed adjustment, amount to be announced.
- Coverage: Employees who work at least 2 hours in any 2-week period in Chicago for an employer with 4+ employees; all domestic workers regardless of employer size; employers with fewer than 4 employees follow the federal minimum.
Rates and tiers
| Tier | Rate | Since |
|---|---|---|
| employers with 4 or more employees | $17.05 | |
| tipped workers, employers with 4 or more employees (cash wage) | $12.96 | |
| domestic workers (any employer size) and youth workers | $17.05 |
Indexing
Yes
CPI, capped at 2.5% (MCC 6-105-030), rounded to the nickel adjusts 07-01 announced Chicago Office of Labor Standards (BACP), notice posted by... cap 2.5%
Tipped
$12.96
Tip credit still allowed: tipped cash wage $12.96 (76% of $17.05) effective 2026-07-01; employer must make up any shortfall to $17.05. Ordinance SO2023-0003049 (Oct 2023) phases the tip credit out...
Ordinance
Municipal Code of Chicago ch. 6-105 (Minimum Wage), incl. 6-105-030; tipped phase-out via 2023 ordinance amending...
Scheduled increases
July 1, 20272 jurisdictions
CityTBA
Chicago, ILemployers with 4+ employees · indexed-unannounced · CPI or 2.5%, whichever is lower.
TBAindexed, amount to be announced
CityTBA
Chicago, ILtipped workers · ordinance · 2023 'One Fair Wage' ordinance scheduled 8-point annual steps toward 100% of the minimum wage by 2028-07-01; the 2026 notice ($12.96 = 76%) does not...
TBAindexed, amount to be announced
2025 (July 1): $16.60 / $12.62 tipped / $16.50 youth-subsidized. 2026 official notice (updated 2026-05-27): $17.05, tipped $12.96, OT $25.58/$21.49; notice says domestic and youth workers must receive at least $17.05. City-contract/concession minimum $18.50....
Common questions
What is the Chicago minimum wage?
$17.05 an hour for employers with 4 or more employees, effective July 1, 2026.
Is the Chicago minimum wage higher than the Illinois state minimum wage?
Yes, by $2.05: $17.05 versus $15.00.
When does the Chicago minimum wage change next?
On July 1, 2027, by an indexed amount to be announced.
Sources
- https://www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html official
- https://www.chicago.gov/content/dam/city/depts/bacp/OSL/2026_MW%20and%20PL-English_Public%20Notice_FINAL_20260527.pdf official
- https://www.chicago.gov/content/dam/city/depts/bacp/OSL/faqminimumwage09302025.pdf official
- https://www.chicago.gov/city/en/depts/bacp/supp_info/public-notices.html official
- https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html official
- https://laborcenter.berkeley.edu/inventory-of-us-city-and-county-minimum-wage-ordinances/
Checked 2026-09-02; researcher confidence 0.85.