St. Paul, MN (KROC-AM News)- Minnesota’s minimum hourly wage is set to rise next year. 

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The Minnesota Department of Labor and Industry announced the wage adjustment for inflation on Wednesday. The minimum wage a business must pay its employees is determined by the amount of annual revenue it brings in. 

Starting January 1 of 2024, businesses that have an annual gross revenue of at least $500,000 will be required to pay their employees at least $10.85 per hour, which is an increase of $0.26. Employers with revenues under the $500,000 threshold must pay their employees at least $8.85 per hour, an uptick of $0.22. 

The training wage and youth wage, which are the same for all businesses regardless of annual gross revenue, will also rise to $8.85 per hour, which is also a $0.22 increase from the current minimum. The new minimum wage is increase is 2.5% for all employers.

Close-up of a businessman's hand opening envelope with paycheck

 "Increasing minimum-wage rates gives the lowest-wage workers in Minnesota more earning power as they work hard to support themselves and their families," said Minnesota Department of Labor and Industry Commissioner Nicole Blissenbach in a news release announcing the wage adjustments. 

The adjusted minimum-wage rates will not apply to businesses that operate in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.

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