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Maryland lawmakers are advancing a proposal that could raise the state’s minimum wage to $25 an hour by 2030, a significant jump from the current $15 rate.

The Living Wage for All Act outlines a phased increase over the next several years. Under the proposal, the minimum wage would rise to $17 in 2027, $20 in 2028, $22.50 in 2029 and ultimately $25 on Jan. 1, 2030. The bill would also eliminate the state’s tip credit beginning in 2031, requiring employers to pay tipped workers the full minimum wage before tips. Starting in 2033, wages would automatically adjust with inflation.

Supporters say the measure is necessary to keep up with the rising cost of living. Democratic Del. Vaughn Stewart, one of the bill’s sponsors, said a wage floor should truly function as a floor, ensuring all workers earn the full minimum wage directly from employers, with tips added on top. He argued the gradual rollout gives businesses time to adapt and would help families better manage inflation.

Advocates, including Saru Jayaraman of One Fair Wage, point to living wage data showing many Marylanders need more than $30 an hour to meet basic expenses, calling $25 a step in the right direction.

Similar efforts were introduced in 2025 but did not advance.