20 hrs/week
Michigan minimum wage 20 hours
$275/wk
$14,279/year gross
Effective January 1, 2026 · Updated 2026-07-08
Michigan Minimum Wage 2026
$13.73/hour
Current Michigan hourly minimum, tipped rates, city ordinances, scheduled increases, and official sources — for HR, payroll, and workers.
By Sammy S. · Founder · AuthorUpdated for 2026
$13.73State minimum
$28,558FT annual gross
+$6.48Above federal
$15.00Next (January 1, 2027)
Pay at 20, 30 & 40 hours/week
Gross at $13.73/hour before taxes. Use the hourly salary calculator and US tax calculator for take-home estimates.
30 hrs/week
Michigan minimum wage 30 hours
$412/wk
$21,419/year gross
40 hrs/week
Michigan minimum wage 40 hours
$549/wk
$28,558/year gross
Annual calculation
$13.73 × 40 hrs × 52 wks = $28,558 gross/year
Overtime at 1.5× minimum is $20.60/hr. Estimate take-home with our hourly to salary calculator or Michigan tax calculator.
Compare Michigan minimum wage
See who has the higher floor — and why — versus other states.
Scheduled increases
Upcoming Michigan rate changes on the books.
January 1, 2027
Senate Bill 8 phased increase schedule.
$15.00/hr
Michigan minimum wage history (2020–2026)
January 1 rates from official U.S. Department of Labor sources — up $4.08/hr (+42.3%) since 2020.
| Year | Jan 1 rate | YoY |
|---|---|---|
| 2026 | $13.73/hr | +$3.17 |
| 2025 | $10.56/hr | +$0.23 |
| 2024 | $10.33/hr | +$0.23 |
| 2023 | $10.10/hr | +$0.23 |
| 2022 | $9.87/hr | +$0.22 |
| 2021 | $9.65/hr | Flat |
| 2020 | $9.65/hr | — |
Sources: DOL WHD historical table · DOL via FRED (Jan 1 series). Rates are as of January 1 each year.
Tipped employees
Cash wage and tip credit rules for Michigan.
Tipped minimum wage$5.49/hr
Tip credit$8.24/hr
Standard minimum$13.73/hr
Tips must bring total compensation to at least $13.73/hr or the employer makes up the difference.
How Michigan's minimum wage is determined
Legislative authority
Michigan's minimum wage is set by state law — typically by the legislature or ballot measure — and enforced by the state labor agency. Federal FLSA sets a $7.25 floor; states may not go lower for covered employees.
Automatic CPI indexing
Michigan adjusts via a formula (typically CPI) so the floor rises without a new legislative vote each year. Recalculation often lands around January.
How rates are set in practice
- Proposed legislation or ballot petition to raise the wage.
- Committee review with testimony from employers, workers, and economists.
- Floor vote (and governor signature or voter approval where required).
- Effective date — often January 1 or July 1, sometimes phased over years.
- Index adjustment using prior-year CPI when indexing is enabled.
The federal minimum has been $7.25 since July 24, 2009. That freeze is why states like Michigan set their own floors.
Frequently asked questions
The Michigan minimum wage is $13.73 per hour in 2026, effective January 1, 2026. Full-time (40 hrs/week, 52 weeks) equals about $28,558/year before taxes.
No. Michigan sets a higher state minimum of $13.73/hour. Employers must pay whichever rate is highest among federal, state, and applicable local laws.
At $13.73/hour working 40 hours per week for 52 weeks, an employee earns $28,558 gross per year before federal income tax, state taxes (if any), Social Security, and Medicare (FICA). Actual take-home depends on tax filing status and deductions.
The most recent increase was to $13.73/hour on January 1, 2026. The next scheduled increase is to $15.00/hour on January 1, 2027.
The tipped cash wage in Michigan is $5.49/hour with a tip credit of up to $8.24. Total compensation including tips must equal at least $13.73/hour.
The next scheduled increase is to $15.00/hour on January 1, 2027. Senate Bill 8 phased increase schedule. Mark this date on your payroll calendar to ensure compliance.
At $13.73/hour for 40 hours per week, 52 weeks per year (2,080 hours), gross annual pay is $28,558 before federal, state, and FICA taxes.
On January 1 2020, the applicable Michigan minimum wage was $9.65/hour. By January 1 2026 it was $13.73/hour — a change of +$4.08/hour (+42.3%). Rates are official U.S. DOL figures (WHD history table and DOL via FRED).
In Michigan, tipped employees earn $5.49/hour minimum cash wage (as of January 1, 2026). Employers can use a tip credit of up to $8.24; total pay including tips must meet the standard minimum of $13.73/hour.
Yes. Michigan automatically adjusts its minimum wage annually based on inflation (CPI). The next scheduled increase is $15.00/hour on January 1, 2027.
At $13.73/hour in Michigan: 20 hrs/week ≈ $275/week ($14,279/year); 30 hrs/week ≈ $412/week ($21,419/year); 40 hrs/week ≈ $549/week ($28,558/year). Gross before taxes.
Some workers may be exempt depending on job duties, employer size, or industry. Exempt categories typically include outside salespeople, certain agricultural workers, and some domestic workers. Always verify whether a specific position qualifies for exemption with your state labor department or a lawyer.
Contact your state's Department of Labor or equivalent wage and hour enforcement agency. Many allow online complaint forms. The U.S. Department of Labor also accepts complaints: visit www.dol.gov or call 1-866-4-USDOL. Retaliation against workers who report violations is illegal.
The MIT Living Wage Calculator estimates that a single adult needs $24.00-$30.00/hour (varies by state) to afford housing, food, childcare, healthcare, and transportation without government assistance. Michigan's minimum wage of $13.73 is typically below this threshold, which is why many minimum wage workers receive SNAP, Medicaid, or housing assistance.
More ways to use these rates
- All states minimum wage table — compare every jurisdiction side by side
- Minimum Wage Comparisons — State vs state — who has the higher floor and why.
- City Minimum Wage Profiles — Seattle, San Francisco, Chicago, Denver, and more local floors.
- Hourly Salary Calculator — Convert $/hr to weekly, monthly, and annual pay.
- US Tax Calculator — Estimate take-home from minimum wage in your state.
- US Overtime Calculator — See OT pay when weekly hours exceed 40.
- FICA Calculator — Social Security + Medicare on every paycheck.
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