1 min read

Illinois Minimum Wage is increasing January 1

Featured Image

Effective January 1, 2023, the minimum wage in Illinois will increase for tipped and non-tipped employees.

The Illinois minimum wage will increase to $13 for non-tipped workers. Minimum wage for tipped workers will increase to $7.80; however, according to a recent press release they must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.

Also, effective January 1, workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour.

Keep in mind that there are some exceptions to Illinois state minimum wage laws —

  • Cook County minimum wage is currently $13.35 for non-tipped workers and $7.40 for tipped workers, and the city of Chicago minimum wage is $15.40.
According to Cook County's Minimum Wage Ordinance, minimum wage in the County is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the County’s calculation using the Consumer Price Index (CPI). The ordinance applies to hourly, salaried, and tipped employees over the age of 18 working in Cook County and those who may be working within the County to make deliveries or driving within County limits.
  • The city of Chicago has its own Ordinance: minimum wage is $15.40 for employers with 21 or more employees and $14.50 for smaller employers. Minimum wage for tipped employees at large companies is currently $9.24 and $8.70 for small companies.

See below for a table of Minimum Wage increases for the state of Illinois.

Minimum Wage Chart-1

For questions about whether you’re paying your employees appropriately, it’s recommended that you consult with your accountant or an experienced payroll provider.


Need advice? Why an accountant might be the best advisor you aren’t using (yet)

Running a small business is hard. While some decisions might be easy, there are so many times when it feels like just a little bit of advice from...

Read More

What we do together in the first 90 days

Usually, when you have a new accountant, they employ the SALY (Same As Last Year) method. Meaning, they look at what was done in the past and try to...

Read More

Why we’re a pro Profit First CPA firm

Most CPA firms don’t encourage the Profit First model, here’s why we do.

Profit First is a book written by Mike Michalowicz on how to properly budget...

Read More