What Employers Need to Know: Michigan Minimum Wage Rate 2025 Increase Schedule  

LANSING, Mich. — Michigan’s Minimum Wage will increase twice in 2025 – first increasing on Jan. 1, 2025, following the usual rate increase schedule, and again on Feb. 21, 2025, in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act (IWOWA), PA 337 of 2018, schedule. 

Minimum Hourly Wage Rate Effective Jan. 1, through Feb. 20, 2025:  

  • 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. 

Minimum Hourly Wage Rate Effective Feb. 21, 2025, and Thereafter:  

Effective Date 

Minimum Hourly Wage Rate 

Tipped Employee 

85% Rate 

Minimum Hourly Rate 

Minimum Reported Average Hourly Tips 

Feb. 21, 2025 

$12.48 

$5.99 

$6.49 

$10.61 

Feb. 21, 2026 

$13.29 

$7.97 

$5.32 

$11.30 

Feb. 21, 2027 

$14.16 

$9.91 

$4.25 

$12.04 

Feb. 21, 2028 

$14.97 

$11.98 

$2.99

$12.72 

  • 85% Rate: Minors under the age of 18 may be paid 85% of the minimum hourly wage rate. 
  • Training Wage: A training wage of $4.25 per hour may be paid to employees under 20 years of age for the first 90 calendar days of employment. 

Every Oct. 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 Nov. 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. 

 

Share this post

Host

Felicia G. Harris
​Principal Owner

This Podcast will provide you with the latest human resources trends whether you only do business in your home state or across the United States. You will be able to call in and talk with human resources professionals about the issues that keep you up at night, and more importantly, hear best practices from other business owners that have been in your shoes

Subscribe

Archives