COLUMBUS, Ohio (WCMH) – Starting on Jan. 1, 2024 the minimum wage in Ohio will increase by about 3.5%.

The state’s minimum wage has been steadily increasing each year since 2006, but 2023 and 2024 saw even bigger increases. That’s because the minimum wage is directly tied to Ohio’s inflation rate.

In the new year, non-tipped employees will see their wage raise from $10.10 to $10.45. Tipped employees’ wage will go from $5.05 to $5.25.

“Every year when inflation erodes the value of a dollar the amount of minimum wage is going to increase to offset that. So basically, the real value of the minimum wage is going to stay constant,” said Dr. Bruce Weinberg, an economics professor at Ohio State University.

For minimum wage workers, this increase is a huge deal. But Weinberg said it won’t have a big impact on Ohio’s increasing inflation rate.

“In terms of the overall Ohio economy, I think that 3.5% increase in the minimum wage probably has a relatively small effect on inflation,” Weinberg said.

Weinberg said the people who will notice the increase the most are the minimum wage workers.

“I would frame this as sort of a good government housekeeping kind of activity. This is not a shock to employers,” Weinberg said.

And some Ohio workers even think minimum wage workers should be paid more than $10.45.

“I think it should be tied to how strong the economy is in the area and our economy is pretty strong. People should be getting paid more. You shouldn’t, after working 10 or 12 hours, go home with only 120 bucks,” said Ohio resident Marcus Gonzalez.