Chicago Raises Minimum Wage, Slows Tip Credit Phaseout

June 8, 2026, 7:50 PM UTC

The hourly minimum wage in Chicago, Illinois, is rising to $17.05 effective July 1 according to a June 8 mayoral press release.

This $17.05 minimum wage will also apply to subsidized youth employment programs and subsidized transitional employment programs. Chicago has had a reduced minimum wage rate for these programs, but this is the first year that they will be subject to the city’s full minimum wage, according to the press release.

Tip Credit Phaseout Postponed

Chicago’s tipped minimum wage will rise to $12.96 from $12.62 on July 1, according to the press release. Like last year, the tipped ...

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