Rhode Island Minimum Wage will Increase by 2025

Rhode Island Minimum Wage Rate Set to Increase to $15 by 2025

Rhode Island has amended its minimum wage law to raise the state’s minimum wage rate to $15 per hour by Jan. 1, 2025.

Rhode Island Minimum Wage Rate

The current minimum wage rate in Rhode Island is $11.50 per hour. Under state law, employers must pay their employees a wage rate that is at least equal to the state’s minimum wage rate. The minimum wage rate in Rhode Island will increase gradually until it reaches $15 per hour.

  • $12.25 per hour on Jan. 1, 2022
  • $13 per hour on Jan. 1, 2023
  • $14 per hour on Jan. 1, 2024
  • $15 per hour on Jan. 1, 2025

Tipped Employees

Rhode Island allows employers to pay a lower minimum wage rate to tipped employees. The state allows employers to pay this lower wage, also known as a “cash wage,” because it assumes that the employee’s tips will be sufficient to offset the difference between the cash wage and the state’s minimum wage rate.

The cash wage for tipped employees in Rhode Island is $3.89 per hour. Employers are required to subsidize their tipped employees’ wages if the employees’ tips are not enough to enable them to earn wages at a rate that is at least equal to the state’s minimum wage rate.

Impact on Employers

Employers should review and adjust their employee payroll practices and procedures to account for these upcoming minimum wage increases.

Important Dates To Remember  

Oct. 1, 2020

Rhode Island’s minimum wage rate increased to $11.50 per hour

May 20, 2021

Rhode Island Governor signed minimum wage amendments into law

Jan. 1, 2022

Rhode Island minimum wage rate will increase to $12.25 per hour

For More on Rhode Island Minimum Wage Rates 

For more information on Rhode Island Minimum wage rates, or which federal employment laws apply to your company please reach out to Next Generation Payroll.

Next Generation Payroll is a black owned digital marketing company that provides payroll processing, HR management, and insurance solutions for businesses that are looking to scale up. We also host several business networking events in Dallas, TX for black owned business owners and entrepreneurs in order to connect our local community to resources that will help them to thrive.

We are one of the top payroll processing companies for small businesses based in Dallas, TX. Our services are centered around risk management, operational efficiency, and strategies that improve market penetration by helping you generate new business clients and leads. We build up small businesses making sure your business is solvent, and it operates efficiently in all economic climates.

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