Minimum Hourly Wage Rate
Michigan's Minimum Wage Increase
Michigan’s Minimum Wage is set to increase to $12.05 per hour by January 1, 2030. The current rate, effective March 2019, is $9.45 per hour. Increases through 2030 are set to be effective each January 1 as follows:
2020 $9.65/hour
2021 $9.87/hour
2022 $10.10/hour
2023 $10.33/hour
2024 $10.56/hour
2025 $10.80/hour
2026 $11.04/hour
2027 $11.29/hour
2028 $11.54/hour
2029 $11.79/hour
2030 $12.05/hour
Tipped Employees
Public Act 337 of 2018 allows employers to take a tip credit on minimum wage under certain conditions for employees who customarily and regularly receive tips from a guest, patron or customer for services rendered to that guest, patron, or customer.
Tipped employees may be paid 38% of the minimum hourly wage rate, provided:
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Employees are informed in advance of being paid about the tip provisions.
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Employees receive tips and they are proven gratuities as indicated by the employee's declaration for Federal Insurance Contribution Act.
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The tips received plus the wages paid equals or exceeds the minimum hourly wage rate and, if not, the employer pays the shortfall.
Effective January 1, 2020, 38% of the minimum hourly wage rate will increase from $3.59 to $3.67 per hour.
Employees 16 to 19 Years of Age
An employer may continue to pay minors 16 to 17 years of age 85% of the minimum hourly wage rate. January 1, 2020, that rate will increase from $8.03 to $8.20 per hour. There is no change to the training wage of $4.25 per hour that may be paid to newly hired employees, 16 to 19 years of age, for the first 90 days of their employment.