Florida’s minimum wage has officially increased by another dollar, rising from $13 to $14 an hour as of September 30, 2025. This change is part of a multi-year plan approved by Florida voters in 2020 through Amendment 2, which aims to gradually increase the state’s minimum wage to $15 per hour by 2026. The goal of the increase is to help workers keep up with the rising cost of living in the state.
Navigating the minimum wage hike
The minimum wage hike is the latest in a series of planned, annual increases. The schedule for non-tipped employees is as follows:
- September 30, 2022: $11.00
- September 30, 2023: $12.00
- September 30, 2024: $13.00
- September 30, 2025: $14.00
- September 30, 2026: $15.00
For tipped employees, the new law raises their required cash wage to $10.98 per hour. Employers must ensure that the combination of this base wage and tips is at least equal to the new $14 per hour minimum wage. If tips do not make up the difference, the employer must cover the gap.
After the final scheduled increase in 2026, the minimum wage will no longer increase by a set amount each year. Instead, future adjustments will be tied to inflation, specifically the Consumer Price Index.
What this means for skilled workers
For a full-time worker, this latest $1 increase translates to an extra $2,080 a year. While the pay raise provides more disposable income and can help reduce economic stress, some experts caution that it could lead to fewer hours or benefits for some employees. As the cost of living continues to rise in Florida, driven in part by higher real estate prices, the wage increase aims to provide a much-needed financial boost. It is important for workers to track their wages and tips to ensure they are being paid the correct amount.
What it means for employers
The minimum wage hike requires employers to adjust their payroll systems, financial goals, and staffing plans. Small and mid-sized businesses, in particular, may feel a “cash pinch” from the increased labor costs. In response, some companies may turn to automation or reduce work hours to offset these costs, which could ultimately lead to a decrease in employment opportunities.
Staying compliant with these changes is crucial for businesses. Florida employers are required to pay all non-exempt employees at least the new minimum wage and must post a notice of the new wage in a visible, accessible place at each establishment. Failure to comply can result in legal action and fines.
For companies seeking to manage labor costs and expand their talent pool, partnering with an Employer of Record (EOR) can be a strategic solution. An EOR, like Multiplier, allows businesses to access talent globally without the burden of navigating complex and changing local labor laws themselves.
This is especially useful for companies that are hiring outside of Florida’s borders, where they don’t have to worry about local minimum wage laws and can access talent at more competitive rates. Multiplier handles payroll, benefits, and compliance in over 150 countries, enabling businesses to scale efficiently and compliantly while mitigating the risks associated with evolving regulations.
Book a demo today.
FAQs
What is the new minimum wage in Florida?
As of September 30, 2025, Florida's minimum wage for non-tipped employees is $14 per hour. For tipped employees, the new base wage is $10.98 per hour, with the total wage (including tips) required to meet or exceed $14 per hour.
Why is Florida's minimum wage increasing every year?
The annual minimum wage increases are mandated by Amendment 2, which was approved by Florida voters in November 2020. The amendment requires a $1 increase each year on September 30 until the wage reaches $15 an hour in 2026.
What is the final scheduled minimum wage increase in Florida?
The final scheduled increase under the current amendment will take place on September 30, 2026, when the minimum wage will become $15 an hour. After that, annual adjustments will be based on inflation and the Consumer Price Index, not a fixed dollar amount.
How does the minimum wage increase in Florida impact employers?
The increase in the minimum wage will raise labor costs for businesses that rely on low-wage workers. Small and mid-sized businesses, in particular, may feel a financial strain and could be forced to consider adjustments such as raising prices, reducing employee hours, or investing in automation to offset the costs.
What is the difference between tipped and non-tipped minimum wage in Florida?
Non-tipped employees must be paid the full state minimum wage, which is now $14 per hour. Tipped employees are paid a lower cash wage of $10.98 per hour, but their employer must ensure that their combined hourly earnings from wages and tips total at least the $14 minimum wage. If the total is less, the employer must pay the difference.
