From the beginning of 2025, all employers, regardless of their size, are obliged to pay their employees at least $20.76 per hour.

Seattle Mayor Bruce Harrell sees this minimum wage increase for all employers as positive for workers and the local economy.

“Seattle has one of the highest minimum wages in the country – this is a good thing for workers, a good thing for our economy as a whole, and something we should be proud of,” Harrell said in a statement press release.

The current minimum wage in Seattle is set at $19.97 per hour for companies with more than 500 employees. Smaller employers can pay their employees at least $17.25 per hour if they pay $2.72 per hour for medical benefits, or if the employee earns $2.72 per hour in tips.

Last August, Seattle City Councilmember Joy Hollingsworth proposed a bill to extend the city’s $2.72 tip credit, but the legislation repealed just three days after it was first introduced.

Harrell has supported ending the tip credit, previously noting that the COVID-19 pandemic and rising inflation were not included in the city’s original projections, further exacerbating wage disparities.

“While this is the right thing to do for pay fairness, we recognize that this will represent a significant change for many small businesses that are still recovering from the impacts of the pandemic and resulting record inflation,” Harrell said. “We are committed to aggressively addressing many of the pressures small restaurants face going forward… including best practices in addressing the lack of tipping.”

Seattle now has the highest minimum wage in the county: $20.76. The second highest is a connection between the city of Tukwila and unincorporated parts of King County for $20.29 per hour.