Chicago Minimum Wage 2026 and 2027
As of October 30, 2026, the minimum wage in Chicago is $17.05 per hour for employers with 4 or more employees, in effect since July 1, 2026. It is set by the local ordinance and is $2.05 above the Illinois statewide minimum of $15.00 and $9.80 above the federal minimum of $7.25.
Maintained by Archie Chang · Rates and sources checked October 30, 2026 · Methodology & sources
Current rate (October 30, 2026)
$17.05
In effect since July 1, 2026
2027 status: Not announced yet
Not announced yet
Next adjustment date: July 1, 2027
Compared with Illinois
$2.05 higher
Illinois statewide rate $15.00; federal $7.25
Chicago minimum wage rates
| Group | Rate on October 30, 2026 | Since | 2027 |
|---|---|---|---|
| Employers with 4 or more employees | $17.05 | July 1, 2026 | Not announced |
| Tipped workers (cash wage) | $12.96 | July 1, 2026 | No change until July 1, 2028 |
| Subsidized youth and transitional employment programs | $17.05 | July 1, 2026 | Not announced |
Set by Chicago Minimum Wage Ordinance (Municipal Code of Chicago 6-105). Administered by the Chicago Department of Business Affairs and Consumer Protection (BACP), Office of Labor Standards.
Chicago minimum wage in 2027: Not announced yet
Not announced yet. Chicago raises the rate every July 1 by the Consumer Price Index change or 2.5 percent, whichever is lower, and BACP announced the July 1, 2026 increase on June 8, 2026. The tipped rate of $12.96 stays until the next scheduled increase on July 1, 2028.
Every July 1 the rate rises by the Consumer Price Index change or 2.5 percent, whichever is lower.
Tipped workers
Tipped workers have a cash wage of $12.96 per hour from July 1, 2026. If the cash wage plus tips does not reach the full minimum wage of $17.05, the employer must make up the difference. BACP says the tipped rate stays at $12.96 until the next scheduled increase on July 1, 2028.
Who is covered
Chicago's ordinance guarantees a minimum wage for many employees who work at least 2 hours in any 2-week period in Chicago for an employer with four or more employees. Domestic workers are covered even when the employer has fewer than four employees.
Employers with fewer than four employees must follow the federal minimum wage.
Tiers and exceptions
- In 2025 the lower rate of $16.50 also applied to employees under 18 and to those subject to Section 6 of the Illinois Minimum Wage Law. The 2026 sources read for this page list only the subsidized youth and transitional programs, which BACP says reached the full rate for the first time on July 1, 2026. Ask BACP how the rate applies to a specific under-18 worker.
- The minimum wage to be paid under City contracts or concessionaire agreements is $18.50 per hour from July 1, 2026.
Chicago compared with Illinois and the federal minimum
| Minimum wage | October 30, 2026 | January 1, 2027 |
|---|---|---|
| Chicago | $17.05 | $17.05 |
| Illinois (statewide) | $15.00 | $15.00 |
| Federal | $7.25 | $7.25 |
Employers must pay the highest rate that applies. See the Illinois minimum wage page for the statewide rules.
Chicago rate history
| Effective | Employers with 4 or more employees |
|---|---|
| July 1, 2026 | $17.05 |
| July 1, 2025 | $16.60 |
Tipped workers (cash wage)
- July 1, 2026$12.96
- July 1, 2025$12.62
Subsidized youth and transitional employment programs
- July 1, 2026$17.05
- July 1, 2025$16.50
Chicago minimum wage pay calculator
| Gross pay | Chicago ($17.05) | Illinois ($15.00) | Difference |
|---|---|---|---|
| Weekly pay | $682.00 | $600.00 | $82.00 |
| Yearly pay | $35,464.00 | $31,200.00 | $4,264.00 |
Gross pay before taxes, paid straight time for every hour entered. The Chicago rate is the general rate for the group named above; tipped, youth and other groups follow the rules listed on this page.
What the official sources say
“Tipped workers (workers who receive tips as part of their wage, like restaurant servers) have a minimum wage of $12.96 for employers with 4 or more employees. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.”
“Chicago’s Minimum Wage Ordinance guarantees a minimum wage for many Employees that work at least 2 hours in any 2-week period in Chicago for an Employer with four or more Employees. Domestic Workers are guaranteed Chicago’s minimum wage – even those working for Employers with fewer than four Employees.”
“Employers with fewer than four Employees must follow the federal minimum wage requirements.”
“The minimum wage for subsidized youth employment programs and subsidized transitional employment programs has caught up to the full minimum wage for the first time ever and will be $17.05.”
Frequently asked questions
What is the minimum wage in Chicago in 2026?
As of October 30, 2026, the minimum wage in Chicago is $17.05 per hour for employers with 4 or more employees, in effect since July 1, 2026. It is set by Chicago Minimum Wage Ordinance (Municipal Code of Chicago 6-105) and administered by the Chicago Department of Business Affairs and Consumer Protection (BACP), Office of Labor Standards.
Will the Chicago minimum wage go up in 2027?
Not announced yet. Chicago raises the rate every July 1 by the Consumer Price Index change or 2.5 percent, whichever is lower, and BACP announced the July 1, 2026 increase on June 8, 2026. The tipped rate of $12.96 stays until the next scheduled increase on July 1, 2028.
How does the Chicago minimum wage compare with the Illinois and federal minimums?
The Illinois statewide minimum is $15.00, so Chicago is $2.05 higher. The federal minimum is $7.25. An employer must pay the highest rate that applies.
Who is covered by the Chicago minimum wage?
Chicago's ordinance guarantees a minimum wage for many employees who work at least 2 hours in any 2-week period in Chicago for an employer with four or more employees. Domestic workers are covered even when the employer has fewer than four employees. Employers with fewer than four employees must follow the federal minimum wage.
What is the tipped minimum wage in Chicago?
Tipped workers have a cash wage of $12.96 per hour from July 1, 2026. If the cash wage plus tips does not reach the full minimum wage of $17.05, the employer must make up the difference. BACP says the tipped rate stays at $12.96 until the next scheduled increase on July 1, 2028.
Are there different rates or exceptions in Chicago?
Tipped workers (cash wage): $12.96; Subsidized youth and transitional employment programs: $17.05. In 2025 the lower rate of $16.50 also applied to employees under 18 and to those subject to Section 6 of the Illinois Minimum Wage Law. The 2026 sources read for this page list only the subsidized youth and transitional programs, which BACP says reached the full rate for the first time on July 1, 2026. Ask BACP how the rate applies to a specific under-18 worker.
Sources for Chicago
- City of Chicago BACP: Minimum Wage
- Chicago Office of Labor Standards: Minimum Wage FAQs (September 2025)
- City of Chicago news release, June 8, 2026
Sources checked October 30, 2026.
The FAQ document lists the July 1, 2025 rates.