The Raise the Wage Act of 2025 aims to increase the federal minimum wage through a series of gradual adjustments over several years, ensuring that workers earn a living wage that aligns with the cost of living and economic growth. The Act proposes to raise the minimum wage from $9.50 an hour to 7.00 an hour over five years, with subsequent annual adjustments based on the median hourly wage for all employees. It also establishes new minimum wage rates for tipped employees, starting at $6.00 an hour and reaching 7.00 over six years.