How Wisconsin’s New Minimum Wage Increase Proposal Would Reward Workers

Right now, the minimum wage in Wisconsin matches the federal minimum wage of $7.25 per hour. This has been the state's minimum wage since 2008, when it increased from $6.50.

Tipped employees and opportunity employees qualify for a special minimum wage. Wisconsin's minimum wage for tipped employees is $2.33 per hour (with a $4.92 tip credit), and the "opportunity employee" (under 20 years old, first 90 days of employment) minimum wage is $5.90 per hour.

The standard $7.25 rate matches minimum wage in the neighboring state of Iowa, but it pales in comparison to the minimum wage in Wisconsin's other neighboring states:

• Minnesota: $11.41 (Note: Higher rates apply in Minneapolis and St. Paul)
• Michigan: $13.73
• Illinois: $15.00 (Note: Higher rates apply in Chicago)

However, Democrats at the Wisconsin Capitol are again looking to separate the state from Iowa, and even instantly leapfrog Minnesota and Michigan, by raising its minimum wage now, and then incremental increases to reach $20 by 2030.

Increase In Minimum Wage Proposed In Wisconsin

According to reports, the proposal, introduced by Rep. Angelina Cruz and supported by fellow Democrats, would raise the minimum wage from $7.25 an-hour to $15. Most workers would see an immediate jump to $15 per hour.

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That wage would then have cost-of-living increases of an estimated $1.25 annually to reach $20 by 2030. Employers with 50 or fewer employees would have a longer "ramp-up" period, reaching the $20 mark by 2035.

The subminimum wage for tipped workers would rise from $2.33 to $7.50 immediately. It would gradually increase to $10 by 2030, after which it would be set at 50% of the standard minimum wage.

It's also important to note that the bill would repeal the state law that currently prohibits local municipalities (cities and counties) from setting their own higher minimum wage ordinance

What Happens Next?

Proponents of the bill say raising the state's minimum wage is important to help people in Wisconsin maintain purchasing power. The point to point to MIT's Living Wage Calculator, which estimated a living wage for a single adult in Wisconsin at approximately $21.88 in early 2026, well above the current minimum wage rate of $7.25.

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While supported by over 30 Democratic colleagues and groups like Citizen Action of Wisconsin, the bill faces opposition from Republican lawmakers who have expressed concerns about the burden on small businesses.

It's worth reiterating that employers with 50 or fewer employees would have a longer "ramp-up" period to $20 after the initial increase.

The bill must now be assigned to a committee in the Republican-controlled legislature. It will be difficult to pass without bipartisan support, but it's a positive sign for Wisconsin workers that the issue continues to surface as a priority for a significant number of lawmakers.