District of Columbia - January 2025

District of Columbia Minimum Wage Increase July 1

The District of Columbia's Department of Employment Services, Office of Wage and Hour, announced a change to the minimum wage. Starting on July 1, 2025, the minimum wage will increase from $17.50 per hour to $18.00 per hour for all workers, regardless of the employer's size. Additionally, on the same date, the base minimum wage for tipped employees will rise from $10.00 per hour to $12.00 per hour. However, if an employee's average weekly tip earnings, combined with their base minimum wage, do not meet the District's full minimum wage, the employer is required to pay the difference.

District of Columbia 2025 Unemployment Tax Information

The District of Columbia Department of Employment Services announced unemployment tax information for 2025. Tax rates will continue to be determined under Table VI for employers with an experience rating. Rates range from 1.9% to 4.4% for positive-rated employers and from 6.2% to 7.4% for negative-rated employers in 2025. Newly liable employers pay a tax rate of 2.7%, unchanged from 2024. Employers also pay the same 0.2% Administrative Assessment Fee as last year. The taxable wage base remains at $9,000.