ROCKLAND — Rockland’s and the state’s minimum wage will increase on Jan. 1.

Rockland voters overwhelmingly approved creating a municipal minimum wage November 2020 by a 2,312 to 1,209 vote.

Beginning Jan. 1, 2023 the minimum hourly wage will increase from $13 to $14. In 2024 it will increase to $15. Then the increases will be tied to the annual cost-of-living.

The wage only applies to businesses who employ more than 25 workers in Rockland.

The tip wage, or service employee minimum wage, shall be no greater than half the local minimum wage rate established by the city ordinance. Service employee means any employee engaged in an occupation in which the employee customarily and regularly receives more than $175 a month in tips.

Businesses that violate the city law would be liable for paying back wages as well as incurring fines.

A person who earns the municipal minimum wage in Rockland and works 40 hours per week year-round will earn $29,120 annually in 2023. That will represent an increase of $2,080 (7.6 percent) from 2022.

The state minimum wage for 2022 is $12.75 and is rising to $13.80 on Jan. 1, 2023 and is not limited to the number of employees a company employs.

The federal minimum wage is $7.25 per hour.