San Jose’s minimum wage is expected to increase again on January 1, 2026! Currently it is $17.95 and this rate remains higher than California’s statewide minimum wage reflecting the city’s ongoing cost-of-living adjustments under its local ordinance. Below, we explain how the city sets its minimum wage, provide historical data from recent years, and outline what employees can do if they were not paid the correct rate.
How the Rate Is Set
San Jose’s minimum wage is governed by the City of San Jose Minimum Wage Ordinance, which requires employers to pay at least the local minimum wage for all hours worked within city limits.
The rate is reviewed annually and adjusted based on changes to the Consumer Price Index (CPI) to account for inflation and the rising cost of living in the Bay Area.
Minimum Wage Timeline & Outlook
- January 1, 2025: Minimum wage increased to $17.95 per hour.
- January 1, 2024: Minimum wage was $17.55 per hour.
- January 1, 2023: Minimum wage was $17.00 per hour.
- January 1, 2022: Minimum wage was $16.20 per hour.
Outlook for future years:
San Jose’s minimum wage is expected to continue increasing every January 1, in line with CPI adjustments and local economic indicators. Employers and employees should verify updated rates each year to ensure compliance.
Statewide and Industry-Specific Wages
California’s statewide minimum wage is currently $16.50 per hour as of 2025.
Because San Jose’s rate is higher, the local minimum wage applies to all covered employees working within city limits.
Certain industries, including fast-food establishments and health-care facilities, may have their own wage schedules that differ from the city’s general minimum wage and are subject to separate state regulations.
Historical Minimum Wage Rates in San Jose
| Effective Date | Minimum Wage |
|---|---|
| January 1, 2018 | $13.50 |
| January 1, 2019 | $15.00 |
| January 1, 2020 | $15.25 |
| January 1, 2021 | $15.45 |
| January 1, 2022 | $16.20 |
| January 1, 2023 | $17.00 |
| January 1, 2024 | $17.55 |
| January 1, 2025 | $17.95 |
| January 1, 2026 (projected) | To be determined |
Have You Been Paid the Correct Minimum Wage?
If you worked in San Jose and were not paid at least the applicable minimum wage for your work period, you may be entitled to back pay, penalties, and interest under California labor law.
Our office represents employees in wage and hour cases, including unpaid wages, overtime violations, and minimum wage underpayments.
Contact us if you believe your rights have been violated, fill out our intake form for a confidential case evaluation.
Serving clients in San Jose, the Bay Area, and throughout California.
