Washington state’s minimum wage will grow by 60 cents per hour in 2027, reflecting the continuing impact of inflation and other cost-of-living increases on workers. 

The state Department of Labor & Industries announced Sept. 30 that the state’s minimum wage will increase by 3.5%, reaching a total hourly rate of $17.73, beginning Jan. 1. 

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. 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 $17.13 is already the highest in the nation. Municipalities can set their rates higher. The federal minimum wage remains $7.25 an hour. 

The threshold for the amount of pay a worker must receive to be exempt from overtime pay requirements is also increasing. Beginning Jan. 1, large employers with 51 or more employees must pay overtime-exempt workers 2.5 times the minimum wage – at least $1,773 a week or $92,196 a year – to be exempt from paying those workers overtime.