Here is some good news for all the Alaskans. From July 1, 2025 onwards, you will see a significant increase in your minimum wages, raising it from $11.91 to $13.00 per hour. All thanks to the passage of Ballot Measure 1 in November 2024, which got its approval by 58 per cent of voters. This significant increase sets a remarkable state’s wage floor over the years. Let’s dive into more details about this article.
Alaska Minimum Wage Increase July 2025
The Alaska Minimum Wage applies to all workers who are paid on an hourly basis, irrespective of how the worker is paid, by time, commission, piece, or otherwise. In July 2025, the minimum wage in Alaska will increase to $13.00 per hour, which was previously $11.91. This increase is a result of Ballot Measure 1 in November 2024.
Over 19,400 workers, which is about 6.3 percent of the workforce, will be affected by this increase. The minimum wage increase represents a boost in annual income of $925 for a full-time worker. Let’s discover more about the Alaska Minimum Wage Increase in July 2025.
In this article, you will read about all the relevant details related to the Alaska Minimum Wage Increase in July 2025, along with its impact and adaptation by the workers.
Alaska Minimum Wage Increase: Overview
| Article On | Alaska Minimum Wage Increase July 2025 |
| Department | Alaska Department of Labor |
| Origin | Alaska, U.S. |
| Previous Wage | $11.91 |
| Current Wage | $13.00 |
| Reason for Increase | Ballot Measure 1 |
| Date of Effect | July 1, 2025 |
| Category | Finance |
| Official Website | labor.alaska.gov |
What is the Minimum Wage in Alaska?
According to the Alaska Statutes, the minimum wage and pay standards apply to workers in Alaska. But let’s go through a few of the exceptions that are not covered under the minimum wage:
- A worker in agriculture.
- Workers in Domestic help, including babysitting
- Workers by U.S., State, or local bodies.
- Youth aged under 18 who are employed not exceeding 30 hours per week.
- An individual who provides voluntary services in a medical emergency.
- An individual who delivers newspapers.
- An independent taxi-cab driver
- A watchman or a caretaker who does its operation for not more than four months.
Ballot Measure 1: Voters’ Support and Background
In the November 2024 election, the majority of voters approved Ballot Measure 1, which is an initiative by the locals and the state to increase the minimum wage $15.00 by July 2027. It also aimed to mandate paid sick leave for workers. This measure got passed with a majority of 58 percent voting in its favor under the following circumstances:
- Minimum increase in wages to $13.00 per hour by July 1, 2025.
- Increase in minimum wages to $14.00 per hour by July 2026.
- Final increase in minimum wages to $15.00 per hour by July 2027.
- Increase in Wages according to inflation by starting January 1, 2028.
Additionally, all the salaried employees exempt from overtime now must make at least twice the increased minimum wage. The weekly salary threshold increased from $952.80 to $1,040.
How Did This New Increase Impacted the Economy and Benefitted the Workers?
The new increase in wages has transformed some gains in income. According to the reports from the EPI (Economic Policy Institute), the annual increase in wages led to $925 for full-time workers in Alaska and has impacted over 19,400 workers currently employed, which is nearly 6.3 percent of the total workforce.
In a major circumstance, all the states in the U.S., including Washington and Oregon, have significantly increased the mid-year wage in 2025, which was last increased in about a decade. Over 880,000 workers across the nation benefited from this increase. This July, Alaska is also taking part in this national trend of providing financial assistance.
What is the Impact on Employees and Employers in Alaska?
The implementation of this policy has not only affected the employees but also the employers. Let’s understand how it changed:
- Employers: Small-scale businesses, especially in industries like hospitality and food service, may need to regulate payroll systems, re-evaluate the prices on goods, and adjust the shift of the staff to manage increased labor costs.
- Employees: This increase provided a more livable wage and supported the morale of the workers, particularly those who are affected by the higher cost of living. This increase will potentially increase the purchasing power and reduce dependency on public assistance programs.
Why This Increase Matters?
- Reinstating Purchasing Power: The last statutory minimum wage increase in Alaska occurred a decade ago, which was $11.91. This amount lagged behind the inflation and impacted most of its citizens in a state which is known for its harsh climate and high expenditures. The new rate of $13 represents a significant step towards reinstating purchasing power.
- Going along with National Trends: Till July 1,2025, more than fifteen states and large municipalities increased their wages by mid-2025. Alaska is one of such states, standing out boldly and aiming to increase the minimum wage to $15 by 2027.
- Justice and Fairness: According to the latest data by EPI, a disproportionate number of minimum-wage workers are either women or people of color. Though the adjustment is less in number, it still supports equity by raising incomes for those who are most affected by lower pay.
- Reduced Poverty and Dependency of Public Assistance: With an increase in daily earnings of the workers, they will be more independent in their spending and will become less dependent on the government’s Public Assistance Programs.
- Less Concerns Regarding Inflation and Cost: Though this increase may spur adjustments in labor-sensitive sectors, the gradual implementation of policies will counterbalance the inflation risks.
