Chicago minimum wage 2026, $17.05 an hour.

The current rate

The City of Chicago says that as of July 1, 2026 its minimum wage is $17.05 an hour for employers with 4 or more employees. Tipped workers, such as restaurant servers, have a minimum wage of $12.96 for those employers. If a tipped worker's wages plus tips do not reach the full minimum wage, the employer must make up the difference. At $17.05 a 40-hour week is $682.00 before tax, or $35,464.00 over 52 weeks.

How it changes every July 1

The city page says the minimum wage increases every July 1 under the Minimum Wage Ordinance, "according to the Consumer Price Index or 2.5%, whichever is lower". That cap means the July increase can never exceed 2.5%. A new July 1 rate therefore replaces the one on this page each year: the 2026 figure is the rate for the twelve months from July 1, 2026, not for the calendar year, which is why searches for "2026" can land on two different numbers.

City contracts and concessions

The city lists a higher figure for work under City contracts or concessionaire agreements: $18.50 an hour as of July 1, 2026. If you work for a business under a city contract, ask whether that rate applies to you. The general rate in the calculator is the one most workers need.

Posting and notice duties

The page says every employer must post the current minimum wage, along with Fair Workweek (if applicable), paid leave and paid sick leave, and wage theft notices, in a conspicuous place at each Chicago facility. Employers must also give a covered employee notice of the current minimum wage with the first paycheck and annually with a paycheck issued within 30 days of July 1. If you have never seen the current rate on a workplace poster or paystub notice, that is worth raising.

Worked example

A 30-hour-a-week retail worker in Chicago earns $511.50 a week at $17.05, or $26,598.00 over 52 weeks. A server paid the tipped cash wage of $12.96 for 30 hours has $388.80 in cash wages before tips, so tips need to add at least $122.70 for the week to reach the $511.50 full minimum.

What this page does not cover

• The city page gives its main figures for employers with 4 or more employees. Check with the city if you work for a smaller employer.
• It does not cover Illinois statewide wage law or the Chicago Fair Workweek and paid leave ordinances beyond the notice requirement.

FAQ

What is the minimum wage in Chicago in 2026?

$17.05 an hour as of July 1, 2026 for employers with 4 or more employees, according to the City of Chicago.

When does the Chicago minimum wage go up?

Every July 1, by the change in the Consumer Price Index or 2.5%, whichever is lower.

What is the Chicago tipped minimum wage?

$12.96 an hour as of July 1, 2026 for employers with 4 or more employees. If wages plus tips fall below the full minimum wage, the employer must pay the difference.

Is there a different minimum wage for Chicago city contractors?

Yes. The city lists $18.50 an hour as of July 1, 2026 for work under City contracts or concessionaire agreements.

How much is $17.05 an hour per year?

$35,464.00 before tax at 40 hours a week for 52 weeks. The calculator on this page lets you change the hours and weeks.

Do employers have to post the Chicago minimum wage?

Yes. Employers must post the current minimum wage at each Chicago facility and give covered employees notice with the first paycheck and annually within 30 days of July 1.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it.

• City of Chicago BACP: Minimum Wage: The $17.05 rate from July 1, 2026, the $12.96 tipped rate, the $18.50 city-contract rate, the CPI or 2.5% rule and the notice duties.