Las Cruces to raise minimum wage and tipped wage in 2025

Organ Mountain News report

LAS CRUCES - The City of Las Cruces will increase its minimum wage and tipped wage rates effective Jan. 1, 2025. The City notified residents of the upcoming change in October.

The minimum wage will rise to $12.65 per hour, and the tipped wage will increase to $5.06 per hour, in accordance with the Las Cruces Municipal Code. The adjustment marks the second consecutive year of increases, following a rise from $12 per hour to $12.36 in 2024 for the minimum wage and $4.95 per hour for tipped workers.

The city’s minimum wage has steadily increased from $10.25 per hour in 2020, while the tipped wage has grown from $4.10 during the same period.

Wage calculation and state comparison

In 2014, the City of Las Cruces passed an ordinance linking minimum wage adjustments to the Consumer Price Index (CPI) starting in 2020. Each year, the city calculates wage rates based on the CPI and compares them to the State of New Mexico’s minimum wage. The higher rate is adopted.

While the state’s minimum wage was higher from 2021 to 2023, Las Cruces’ minimum wage surpassed the state’s in 2024 due to CPI adjustments. For 2025, the state’s minimum wage will remain at $12 per hour, keeping the city’s rate higher.

Living wage challenges

Despite these increases, Las Cruces’ minimum wage falls well below the amount needed for self-sufficiency. According to the Living Wage Calculator from the Massachusetts Institute of Technnology, a living wage for a single adult with no children in New Mexico is $20.10 per hour. This calculation, as of February 2024, factors in essential living expenses such as food, housing and healthcare.

For more information on the city’s minimum wage for 2025, visit the City of Las Cruces website.