The increasing cost of everything – from food to energy to doctor’s office visits – means Washington state employers paying minimum wage to workers must increase their pay come Jan. 1. 

The state Department of Labor & Industries announced Sept. 30 that the state’s minimum wage will increase 47 cents per hour, or 2.8%, in 2026, reaching a total hourly rate of $17.13. 

The agency calculates the coming year’s minimum wage using the federal Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Earners. Over the last 12 months, the index increased 2.9% before seasonal adjustment. 

The index measures the change in prices paid by consumers for goods and services, including but not limited to food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, medications and more. 

Washington state’s current minimum wage of $16.66 is already the highest in the nation. Municipalities can set their rates higher. The federal minimum wage remains $7.25 an hour.