Vermont Minimum Wage Increase: Starting January 2025

Starting January 1, 2025, Vermont’s minimum wage will increase from $13.67 to $14.01 per hour. This adjustment aligns with the state’s policy of annual wage increases tied to inflation, ensuring that wages keep pace with rising living costs. The Vermont Department of Labor calculated the 34-cent increase based on Consumer Price Index (CPI) data, reflecting the impact of inflation over the past year.

This increase aims to provide financial relief to workers, particularly those in retail, food service, and healthcare sectors, where wages often hover near the minimum. For employers, especially small businesses, the change will require strategic planning to balance labor costs with operational needs.

Though some businesses have expressed concerns about the cumulative effect of wage hikes, Vermont remains committed to supporting its workforce. By keeping wages in step with inflation, the state seeks to foster economic stability, ensuring that workers can better manage the increasing costs