Good news if you have been over spending this holiday season for the new year with a planned increase to minimum wages across the state.

The minimum wage in Massachusetts will soon be increased to $12.75, up $0.75 from 2019 as part of an effort to increase the lowest paying jobs with a long term target of $15 per hour by 2023.

The Bay State is one of the 21 states and 26 cities where the minimum wage is expected to rise on Jan. 1., 2020.

The amount of money that tipped workers receive is also expected to rise to $4.95 in the new year and is expected to affect 61% of tipped workers.

A recent study was conducted to determine how increasing the federal minimum wage from $7.25 to $10, $12 or $15 per hour by 2025 would affect employment and family income.

The conclusion was that increasing the minimum wage would have two major impacts on low-wage workers.

First, earnings would increase for many, which would lift some families out of poverty. But also, other low-wage workers would become jobless, their family income would drop, and it could place them below the poverty threshold.

The target of $15 per hour federal minimum wage would boost pay for 27 million people, according to an analysis by the Congressional Budget Office. It would cause 1.3 million other workers to lose their jobs, causing them to fall below the poverty line, according to the CBO’s median estimate.