Thousands of workers in Oregon will receive a pay increase starting July 1, 2026, when new state minimum wage rates go into effect. Unlike other states, Oregon does not have a single minimum wage for its entire territory: it applies three different amounts depending on the area where you work.

The increase was confirmed by the Oregon Bureau of Labor and Industries, known as BOLI, which updates rates each year. Starting in 2023, the state's standard minimum wage is tied to inflation, as measured by the Consumer Price Index.

How much will the minimum wage be in Oregon starting July 1

Starting July 1, 2026, the new minimum wages will be:

The difference is due to the three-zone system Oregon uses. The Portland metropolitan area has the highest rate. Non-urban counties have the lowest. The rest of the state remains under the standard rate.

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Why Oregon has three minimum wages

The system seeks to reflect differences in the cost of living between urban, metropolitan and rural areas. Por eso, un trabajador en el área de Portland cobrará más por hora que otro en un condado no urbano, aunque ambos estén dentro del mismo estado.

According to BOLI, starting July 1, 2027, rates will continue to adjust annually: the Portland area will remain $1.25 above the standard wage, while non-urban counties will be $1 below.

To whom does the increase apply?

The new minimum wage applies to most hourly workers in Oregon. Employers must pay at least the rate corresponding to the area where the work is performed, not necessarily where the employee lives or where the company is registered.

For workers who move between different areas, the calculation may depend on the place where they actually perform their tasks.

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What workers should check

Those who work in Oregon should check which zone their employment is located in and confirm that their hourly pay is updated as of July 1. It is also a good idea to review the pay stub after the change to ensure that the new rate was applied correctly.

The increase comes in a context in which the cost of living continues to be a concern for many families. For workers in restaurants, shops, cleaning, hotels, care and services, the difference per hour can represent a relief in the monthly budget.