ST. PAUL -- Minnesota's minimum wage will increase by 2.5 percent on January 1st.

The Minnesota Department of Labor and Industry says the current large-employer wage of $10.33 will increase by 26 cents to $10.59 an hour. Large employers have annual gross revenues of $500,000 or more.

Small employers will have their minimum wages increase by 21 cents from $8.42 to $8.63 an hour.

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The state minimum wage rates will not apply to work performed in the cities of Minneapolis and St. Paul which have higher minimum wage rates.

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