Michigan Minimum Wage to Increase to $13.73 in 2026
Michigan residents can expect a boost in the minimum wage starting January 1, 2026. The state’s minimum wage will rise from $12.48 to $13.73 per hour, marking a significant increase for many workers.
Additionally, changes will affect tipped workers and minors aged 16 and 17, albeit at rates below the standard minimum wage. Tipped employees will see their hourly pay increase to $5.49 per hour, representing 40% of the full minimum wage, provided they receive at least $8.24 in tips.
This adjustment follows a legislative revision that scaled back a previous wage increase plan. Under the new legislation, Michigan’s basic minimum wage is scheduled to reach $15 an hour by 2027, with subsequent adjustments tied to inflation. However, this change has sparked discontent among advocates who are advocating for equal pay for tipped workers by 2030.
Key Changes Effective January 1, 2026:
- The minimum hourly wage will increase from $12.48 to $13.73 per hour.
- The 85% rate for minors aged 16 and 17 will rise from $10.60 to $11.67 per hour.
- The tipped employee rate of hourly pay will be $5.49 per hour, contingent on receiving at least $8.24 in tips.
- The training wage of $4.25 per hour for newly hired employees under 20 for the first 90 days remains unchanged.
