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HOURLY WAGE INDEX

Let’s talk wages in Illinois

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$14.00

What is the minimum wage in Illinois?

The minimum wage in Illinois is $14.00 per hour for employees 18 years of age and older and the Illinois minimum wage for tipped employees is $7.80 per hour. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1.

The Illinois minimum wage is set to increase to $14.00 per hour on January 1, 2024, $15.00 per hour on January 1, 2025, and $15.00 per hour on January 1, 2026.

There are some exceptions to the minimum wage law. For example, employers may pay sub-minimum wages to learners and certain workers with physical and mental limitations. Overtime must be paid after 40 hours of work per week at time and one-half the regular rate.

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$32.27

What is the average wage in Illinois?

The average hourly wage for all occupations in Illinois is $32.27 according to the Bureau of Labor Statistics (BLS). Some of the highest paying industries in Illinois include Management, professional and related occupations, and legal occupations. The average hourly wage for management occupations is $41.99 and for legal occupations is $24.76.
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$34.26

What is the living wage in Illinois?

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$15.40

What is the minimum wage in Chicago, Illinois?

Since July 1, 2022 the minimum wage in Chicago has been at $15.40 per hour for employers with 21 or more workers and $14.50 per hour for employers with 4 to 20 workers.

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

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A guide to hourly labor laws in Illinois

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage:
    • Workers 18 and older: $14.
    • Youths under 18: $13.50, or $0.50 below minimum wage.
    • Youths under 18 working less than 650 hours per calendar year: $12 (Illinois DoL) (820 ILCS 105/4).
  • Tipped Minimum Wage: $8.40, totaling at least minimum wage after tips (Illinois DoL) (820 ILCS 105/4).
  • Overtime: Paid at 1.5 times the regular rate for all hours beyond 40 in a workweek (Illinois DoL) (820 ILCS 105/4).
  • Meal Breaks: Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL). Illinois law requires employees who work at least 7.5 continuous hours to receive a 20-minute unpaid meal break no later than five hours after the work period begins. Employees receive an additional 20-minute meal period for each additional 4.5 hours worked (820 ILCS 140/3). However, federal law requires 5-20 minute breaks to be paid (29 C.F.R. § 785.18). 
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18). 
  • Wage Deductions: Employers cannot make wage deductions unless required by law, to benefit the employee, in response to a valid deduction order, made with the employee's written consent, or other unique qualifiers. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203) (820 ILCS 115/9).

 

  • Final Paychecks: Immediately upon termination or resignation, if possible, or by the next regularly scheduled payday. Employers must issue final payment by check mailed to the employee when requested in writing (820 ILCS 115/5).
  • Wage Payment Frequency: Semi-monthly (820 ILCS 115/3).
  • Paid Sick Leave: No state/federal law (DoL). Specific localities, including Chicago and Cook County, require paid sick leave accrued at one hour for every 35 hours worked (City of Chicago).
  • Paid Family and Medical Leave: No Illinois paid leave law. The FMLA provides up to 12 unpaid weeks per year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • School session: No working during school hours; three hours per day; 18 hours per week.
    • Non-school session: Eight hours per day; 40 hours per week.
    • Working Hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (820 ILCS 205/3) (29 C.F.R. § 570.35).
  • Maximum Daily and Weekly Hours for Children 16 and 17: No Illinois state or federal law restricting 16- and 17-year-olds’ working hours in non-hazardous occupations. Youth are prohibited from working during required school hours (820 ILCS 205/7) (DoL).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

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Learn about wages in your city

Chicago Minimum Wage 2024