Michigan Minimum Wage scheduled to increase twice in 2025
Michigan’s Minimum wage will increase twice in 2025 – first increasing on January 1, 2025, following the usual rate increase schedule, and again on February 21, 2025, in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act (IWOWA), PA 337 of 2018, schedule, according to a Department of Labor and Economic Opportunity Press Release.
The minimum hourly wage rate effective January 1 through February 20, 2025 will be:
- The minimum hourly wage will increase from $10.33 to $10.56 per hour.
- The 85% rate for minors under the age of 18 will increase from $8.78 to $8.98 per hour.
- The tipped employee rate of hourly pay increases from $3.93 to $4.01 per hour.
- The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
The minimum hourly wage rate effective February 21, 2025:
- The minimum hourly wage will increase from $10.56 to $12.48 per hour.
- The 85% rate for minors under the age of 18 will increase from $8.98 to $10.61 per hour.
- The tipped employee rate of hourly pay increases from $4.01 to $5.99 per hour.
- The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
Future increases. The minimum wage will reach $14.97 in 2028 in the following increments:
- $13.29 effective February 21, 2026;
- $14.16 effective February 21, 2027; and
- $14.97 effective February 21, 2028.
Every October beginning in 2028, the state treasurer will calculate an adjusted minimum wage rate, increasing the minimum wage by the rate of inflation. The adjusted minimum wage rate is published by November 1 of the year it is calculated and comes effective beginning Feb. 21 of the succeeding year.
Tipped employees. The minimum hourly wage rate of a tipped employee will be 48% of the minimum hourly wage rate effective Feb. 21, 2025, and will increase based on the following schedule:
- Effective Feb. 21, 2026, it will be 60% of the minimum hourly wage rate.
- Effective Feb. 21, 2027, it will be 70% of the minimum hourly wage rate.
- Effective Feb. 21, 2028, it will be 80% of the minimum hourly wage rate.
- Effective Feb. 21, 2029, it will be 90% of the minimum hourly wage rate.
- Effective Feb. 21, 2030, and thereafter, it will be 100% of the minimum hourly wage rate.
For further information regarding Michigan’s minimum wage and overtime laws, including FAQs and the required employer poster, visit: Michigan.gov/MinimumWage. (Michigan Department of Labor and Economic Opportunity Press Release, October 1, 2024.)