Effective July 1, 2025, the District of Columbia’s minimum wage will increase to $17.95 per hour (up from $17.50), reflecting a 2.7% annual inflation adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U) in the Washington Metropolitan Statistical Area.
For tipped employees, the minimum direct cash wage will rise to $12.00 per hour (up from $10.00), reducing the maximum tip credit from $7.50 to $5.95 per hour.
Next Steps for Employers
Employers should prepare to adjust payroll practices and procedures to ensure compliance with the updated minimum wage by the effective date. Employers must also ensure that tipped employees earn at least the new minimum wage when combining direct wages and tips.
Additionally, employers are required to display an updated wage poster at worksites, as mandated by the D.C. Department of Employment Services (DOES). For remote and hybrid employees, employers must distribute electronic versions of the updated wage notice once available.
