Workers across Montgomery County will see higher minimum wages beginning Tuesday, July 1, as the County’s annual inflation-based wage adjustment takes effect.
The increases are required under County law and are tied to the 2.0% increase in the regional Consumer Price Index for all urban wage earners and clerical workers in the Washington, D.C.-Arlington-Alexandria area during 2025. Beginning July 1, the new minimum wage rates will be:
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Large employers (51 or more employees): $18.00 per hour, up from $17.65.
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Mid-size employers (11-50 employees): $16.50 per hour, up from $16.00.
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Small employers (10 or fewer employees): $15.95 per hour, up from $15.50.
County officials estimate the increase will provide additional annual earnings of approximately $728 for full-time employees at large employers, $1,040 for those working for mid-size employers, and $936 for employees of small employers.
“This minimum wage adjustment reflects our commitment to building an economy that works for everyone,” County Executive Marc Elrich said in a statement. “When wages keep pace with inflation, working people aren’t forced to fall behind as everyday costs rise. Ensuring fair pay strengthens families, stabilizes our workforce, and supports small businesses that rely on local spending.”
Elrich added that tying the minimum wage to inflation creates predictability for both employers and workers while helping ensure the County’s lowest-paid employees keep pace with rising costs.
Montgomery County’s current minimum wage law was enacted in 2017 through legislation sponsored by then-County Council Member Marc Elrich. Under the law, the minimum wage is recalculated each year based on changes in the regional Consumer Price Index. Until all employer categories reach the same wage level, small and mid-size employers also receive an additional annual adjustment equal to 1% above the inflation rate.
