Hawaiʻi currently has a minimum wage of $10.10 per hour. The rate would go up to $12 on Oct. 1, followed by $14 in 2024, $16 in 2026 and $18 in 2028.

The legislation expands the tip credit, which allows employers to pay workers less than the minimum wage if the workers earn enough in tips. The tip credit will go up from 75 cents to $1 on Oct. 1, followed by $1.25 in 2024 and $1.50 in 2028.

It makes the earned income tax credit refundable and permanent. This tax credit helps low- to moderate-income workers reduce taxes they owe and potentially increase their tax refund.