While Boise has become one of the fastest-growing cities in the country, Idaho’s minimum wage has not changed in more than 15 years.
The state’s minimum wage mirrors the federal minimum wage, which Congress last increased over a decade ago. Since then, Idaho’s economy has changed dramatically. Boise is one of the fastest-growing metro areas in the country, with housing costs surging and wages rising across industries.
Despite those changes, state lawmakers have shown little interest in raising the legal minimum wage.
Rep. Steve Berch said Idaho has a long history of tying its minimum wage to the federal rate rather than setting a separate state wage.
Idaho is one of about 20 states that still follow the federal minimum wage, while 30 states and Washington D.C. have set higher pay floors in response to rising costs of living.
“The state’s policy is to keep the state’s minimum wage the same as the federal minimum wage,” Berch said. “So if the federal wage goes up, the state wage would go up accordingly.”
This reflects the broader philosophy of many lawmakers in the Legislature, particularly within the majority party. According to Berch, some lawmakers question whether a minimum wage should exist at all, arguing the free market should determine what workers earn.
In his view, minimum wage laws were originally designed to protect workers from exploitation and provide a basic floor for earnings.
“A minimum wage is supposed to be a safety net so people aren’t exploited,” Berch said. “But with a minimum wage of $7.25 today, it’s almost like we might as well not have one.”
While Idaho’s legal minimum wage has remained stagnant, wages across the state have risen significantly in recent years.
Data from the U.S. Department of Labor shows while the state’s minimum wage has remained at $7.25 since 2009, most workers in Idaho earn significantly more.
According to the department, average weekly wages in Idaho rose about 63 percent between 2015 and 2025, increasing from roughly $734 to $1,195. Average hourly wages also climbed from about $22.30 to $35.15 during that period.
Recent wage data shows the 10th percentile wage in Idaho is about $14 per hour, meaning roughly 90 percent of workers earn at least that amount.
Only about 2-3% of Idahoans earn minimum wage. Labor officials say the gap between the legal minimum wage and actual wages reflects strong demand for workers as Idaho’s population and economy have grown.
Population growth has helped drive demand for goods and services across the state, contributing to job growth and rising wages in many industries.
Economist professor Rafael Ribas said those increases show the labor market has already pushed many wages above the legal minimum.
“In sectors like food service, wages have already moved well above the minimum wage,” Ribas said. “Employers had to raise wages because they couldn’t find workers at the minimum.”
Even so, Ribas pointed out the purchasing power of minimum wage has steadily declined as inflation has raised the cost of everyday goods. That decline has become especially noticeable in cities like Boise, where population growth and housing demand have driven up the cost of living.
Affordability challenges in Idaho stem from multiple economic forces, not just wages. Housing shortages, population growth and limited supply have all contributed to increasing living costs in fast-growing areas.
“When costs rise because supply isn’t keeping up with demand — especially housing — raising the minimum wage alone doesn’t necessarily solve that problem,” Ribas said.
Instead, policymakers often have to consider a broader mix of solutions when addressing affordability, including housing supply, economic development and workforce policies.
Berch agreed the issue extends beyond wages alone.
While he believes the minimum wage should eventually be revisited, he said raising it alone would not address the broader affordability challenges facing Idaho residents.
“If you look at where the minimum wage was the last time it was raised and adjust it for inflation, it would probably be closer to something like $15 an hour today,” Berch said.
Still, he said the broader economic picture also depends on whether Idaho continues to attract employers that offer higher-paying jobs. This includes investing in education, workforce development, and economic growth to expand career opportunities across the state.
Berch pointed to Idaho’s past economic development history as an example. Companies like Hewlett-Packard once brought thousands of well-paying jobs to the Boise area, helping raise wages and strengthen the local economy.
Those kinds of employers not only create jobs but also push wages higher across industries, as businesses compete for workers in a growing market.
Attracting similar employers in the future could play a significant role in improving wages and affordability across the state.
“If we want to make Idaho more affordable, we need to create more opportunities for higher-paying jobs,” Berch said.
As Boise and other parts of Idaho continue to grow, the debate over minimum wage is likely to remain part of a larger conversation about affordability, economic development and the state’s future workforce.
“If people want the Legislature to focus on affordability, health care, good wages and infrastructure,” Berch said, “then they need to elect people who prioritize those issues.”
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I dont know a single place that pays minimum. Even as a high school student its easy to land a job that pays double the minimum.