This bill proposes an increase in the state minimum hourly wage in Iowa, establishing new rates of $10.00 starting July 1, 2025, $12.50 on July 1, 2026, and $15.00 on July 1, 2027. Additionally, for employees who have not completed 90 days of employment, the minimum wage will rise to $9.10 on July 1, 2025, $11.60 on July 1, 2026, and $14.10 on July 1, 2027.

Furthermore, beginning July 1, 2028, the state minimum wage will be adjusted annually on July 1 based on the percentage increase in federal social security benefits from the previous fiscal year, ensuring that the wage will not decrease under any circumstances. The bill amends existing law by removing previous minimum wage figures and inserting the new rates and provisions for future adjustments linked to social security benefits.