Iowa’s Minimum Wage Increased to $7.25 Per Hour in 2008

The state of Iowa has increased their minimum wage from $6.20 per hour to $7.25 per hour effective January 1, 2008.

The increase in the state minimum wage was approved by the Iowa Legislature and signed by Gov. Chet Culver last January.

Iowa’s lowest paid workers has gotten an increase of $2.10 per hour in the past year. For the tipped wait workers, their pay also increased from $1.26 an hour to $4.35 an hour with both pay increases last year.

Nearly 18 percent Iowans, mainly food service and retail workers, will benefit from the increase. Tom Shockley, one of the local businessman, said the biggest local impact will be to young workers 14 to 16 years old.

Iowa Has A New Minimum Wage Law

Effective April 1, 2007, the state of Iowa will increase its minimum wage rate from the current $5.15 per hour to $6.20 per hour. The minimum training wage will increase to $5.30 per hour, effective April 1, 2007. This is the first step of the minimum wage increase.

Tipped workers will be paid 60% of the new minimum wage, which is $3.72 per hour beginning April 1, 2007.

The current minimum wage in Iowa is $5.15, same as federal rate, hasn't been increase for ten years. This increase will make Iowa be the 29th state with a minimum wage higher than the federal rate.

About 128,000 Iowa workers who earn less than $5.15 will see a direct wage raise.