Minnesota's minimum wage for most employers will rise by 15 cents an hour in January.

This is the first time that Minnesota's minimum wage will rise automatically to keep in line with inflation. It stems from a law change in 2014.

The floor wage for large employers will rise to $9.65 per hour from $9.50 now. Smaller employers with revenues below $500,000 per year will be required to pay employees at least $7.87 an hour. That's also the minimum youth and training wages starting next year.

The new wage rates were set by the Department of Labor and Industry based on an analysis of the rising cost of goods and services.

The agency says there are an estimated 250,000 workers in Minnesota who earn less than $9.65 per hour.

Minneapolis leaders this summer approved a $15 per hour minimum wage to be phased in over five years.