Michigan’s minimum wage is set to increase starting January 1st.
The new rate of $13.73 per hour, is an increase of about ten-percent–up from $12.48.
The minimum wage will increase again in 2027, rising to $15 an hour; Increases after that will be tied to the rate of inflation.
The change is part of a process that was put into place earlier this year, aimed at bringing increases in the minimum wage in line with inflation and cost of living increases.
The Improved Workforce Opportunity Wage Act, which passed back in February, was a compromise between Michigan’s lawmakers. It includes an increase in the base pay for tipped workers, from $4.74 per hour, to $5.49, beginning January 1st.
Tipped workers’ base pay will gradually rise, reaching 50% of the minimum wage in 2031. Workers aged 16 and 17 who earn 85% of the minimum wage will get a raise to $11.67 an hour in 2026.