COLUMBUS, Ohio (WCMH) - Minimum wage is increasing for Ohioans starting Jan. 1. Starting in 2025, nontipped employees will earn $10.70 per hour and $5.35 per hour for tipped employees, according to the Ohio Department of Commerce. Right now, the state's minimum wage is currently $10.45 per hour for nontipped employees and $5.25 per hour for tipped employees. The agency announced the minimum wage will apply to employees of businesses with annual gross receipts of more than $394,000 per year. Currently, the 2024 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $385,000. SNAP changes: How they could affect Ohioans The change comes as the Constitutional Amendment, passed by Ohio voters back in 2006, states Ohio’s minimum wage shall increase on January 1 each year by the rate of inflation. According to the department, the minimum wage is tied to the Consumer Price Index for urban wage earners and clerical workers over the 12-month period prior to September. The CPI-W index increased by 2.4% over the 12-month period from Sept. 1, 2023 to Aug. 31, 2024. For employees at smaller companies with annual gross receipts of $394,000 or less per year after Jan. 1, along with 14-and-15-year-olds, the state's minimum wage is $7.25 per hour. According to the department, the state wage is tied to the federal minimum wage for these employees.