Under the legislation, Michigan’s minimum wage rises in stages: it increased to $12.48 on Feb. 21, 2025, will rise to $13.73 on Jan. 1, 2026, and then to $15.00 on Jan. 1, 2027. Then, starting in October 2027, the state treasurer will review the wage every year and adjust it for inflation based on the Midwest Consumer Price Index. However, these annual inflation increases won’t happen if Michigan’s unemployment rate for the previous year is 8.5% or higher.

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Breakdown of the New Rates Starting Jan. 1, 2026:

•  Standard minimum wage: $13.73/hr (currently $12.48/hr)
•  16–17-year-olds (85% rate): $11.67/hr (currently $10.60/hr)
•  Tipped employees: $5.49/hr (40% of full minimum wage), if they earn at least $8.24 in tips per hour
•  Training wage: $4.25/hr for newly hired workers under 20 (first 90 days), unchanged

Michigan’s tipped wage remains far below the standard minimum, a longstanding source of legislative debate as some lawmakers continue pushing for the state to phase out the tipped wage entirely – a measure that has stalled in Lansing.

More money in wallets.

Workers earning minimum wage can expect about $250 more per month for full-time hours. Meanwhile, employers – particularly in hospitality and retail – are preparing for higher labor costs in a job market that is already tight and where many businesses are still struggling to find enough staff.

Where to learn more.

Michigan’s full wage tables, FAQs, and required employer posters are available at michigan.gov/MinimumWage.