Illinois’ minimum wage is increasing again at the start of 2025, and this business owner said that’s good news

PEORIA (25News Now) - A Peoria business owner said the $1 increase in Illinois’ minimum wage, taking effect New Year’s Day, is long overdue, and he said he’s been paying his workers that higher wage since he opened his store.

On Jan. 1. 2025, the state’s minimum wage increases from $14 to $15 per hour. The wage also rises to $9 for tipped workers, and $13 for employees who are younger than 18.

Ty Paluska, owner of Intuition Coffee + Juice at 734 Main Street, said he’s been paying his employees $15 per hour since he opened the businesses last year.

“This wage should have been around for a long time,” Paluska said. “I’ve been working in coffee my whole life, and it took me a long time before I made $15 an hour, and I’m almost 40.”

Illinois State University Professor of Economics, Dr. George Waters, said the dollar increase won’t make a huge impact on the overall economy, but it could mean a lot to the individual worker.

Waters said the 7% wage hike is over the amount of increase in the consumer price index (CPI).

CPI is used to measure inflation or changes in prices paid by consumers.

Chicago has its own minimum wage at $16 per hour.

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