Minimum wage in Michigan
Michigan's basic minimum wage is $13.73 an hour (applicable to employers of 2 or more employees). That is $6.48 above the federal minimum wage of $7.25. DOL lists a scheduled increase to $15.00 on January 1, 2027, after which the rate is adjusted annually by formula. Employers may pay tipped employees a cash wage of $5.49 and count tips toward the rest, with a tip credit of up to $8.24. Against Michigan's $13.73 floor for FLSA-covered employers, among its 3 neighbors Ohio ($11.00), Indiana ($7.25) and Wisconsin ($7.25) are lower.
Verified against the U.S. Department of Labor on (DOL's state table updated ). Source: State Minimum Wage Laws, Minimum Wages for Tipped Employees.
At a glance
| Item | Value |
|---|---|
| State minimum wage | $13.73 |
| Against the federal $7.25 | $6.48 above federal |
| Floor for FLSA-covered employers | $13.73 (the higher of the state and federal rates) |
| Scheduled change | $15.00 on January 1, 2027 |
| Overtime threshold in state law | Weekly - 40 |
| Tipped cash wage | $5.49 |
| Maximum tip credit | $8.24 |
Rates as DOL lists them
| Rate per hour | Applies to |
|---|---|
| $13.73 | Applicable to employers of 2 or more employees |
Premium pay after designated hours: Weekly - 40. DOL footnote 1: The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.
Scheduled increases
| Effective | New rate |
|---|---|
| $15.00 |
DOL's wording: "The Michigan minimum wage is scheduled to increase on January 1, 2027 to $15.00 per hour and then will be adjusted annually based on a set formula."
Tipped employees
Michigan requires a cash wage above the federal tipped minimum of $2.13; the employer may count tips toward the rest, up to the tip credit shown.
| Row | Combined cash and tip minimum | Maximum tip credit | Minimum cash wage | Tipped employee defined by monthly tips of |
|---|---|---|---|---|
| Michigan | $13.73 | $8.24 | $5.49 | Not specified |
- DOL footnote 15: Michigan. The minimum direct cash wage for tipped employees in Michigan is scheduled to increase annually until it reaches 50 percent of the state minimum wage in 2031. Additionally, the Michigan minimum wage is scheduled to increase on January 1, 2027 (to $15.00 per hour); it is then scheduled to be adjusted annually based on a set formula.
A dash means DOL left the cell blank. DOL's general footnote 1: Other additional deductions are permitted, for example for meals and lodging.
What DOL also notes
- The Michigan minimum wage is scheduled to increase on January 1, 2027 to $15.00 per hour and then will be adjusted annually based on a set formula.
- The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate.
Neighbors and the federal floor
| State | State rate | Floor for FLSA-covered employers |
|---|---|---|
| Michigan | $13.73 | $13.73 |
| Ohio | $11.00 | $11.00 |
| Indiana | $7.25 | $7.25 |
| Wisconsin | $7.25 | $7.25 |
| Federal (FLSA) | $7.25 | $7.25 |
More than one law can apply
DOL states that where federal, state and local minimum wage laws all cover an employer, the employer must pay the highest applicable rate. Whether a particular job is covered by the Fair Labor Standards Act, by Michigan's law, or by a city or county ordinance depends on facts this site does not assess. City and county rates are not in DOL's table and are not shown here. This page describes published rates and is not legal advice; for how to raise an underpayment, see FastGuide.
Take-home pay and benefits calculators for Michigan
FastCalc, a sister site, has these calculators for Michigan. Each takes your own figures; this site computes nothing.
Related
- Michigan wage profile: what occupations actually pay in Michigan, from BLS data.
- Minimum wage by state and the federal minimum wage.
- Federal versus state minimum wage and tipped wages and tip credits.
- Take-home pay calculator on FastCalc for what $13.73 an hour leaves after withholding; this site computes nothing.