Michigan’s minimum wage will increase twice in 2025.
The state’s minimum wage is currently $10.33. On Jan. 1, 2025, it will increase to $10.56. On Feb. 21, 2025, it will increase to $12.48.
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The tip credit, or subminimum wage for tipped workers, will be phased out over the next five years. On Feb. 21, 2025, tipped workers will be paid 48% of the minimum hourly wage.
The minimum wage will continue to increase annually and reach $14.97 on Feb. 21, 2028. Tipped workers will earn 100% of the minimum wage on Feb. 21, 2030.
The changes to Michigan’s minimum and subminimum wages are coming because of a major ruling from the Michigan Supreme Court. The court ruled that that it was unconstitutional for the Legislation to adopt-and-amend citizen-initiated petitions. This means the minimum wage and sick time laws, as originally adopted, will be reinstated.
Mothering Justice, Michigan One Fair Wage, Michigan Time to Care sponsored proposals known as the Improved Workforce Opportunity Wage Act (the Wage Act) and the Earned Sick Time Act. They collected enough signatures from Michigan voters to send the proposals to the ballot in the fall of 2018.
Instead of allowing these proposals to go to the ballot, Michigan’s Republican-led Legislature preemptively passed the proposals. After the election, in the same Legislative session, they voted to substantially scale back the laws and make changes that were requested by a business lobby that criticized the new requirements.
On July 31, 2024, the Michigan Supreme Court ruled that the actions taken by the Legislature in 2018 and 2019 to “adopt-and-amend” the voter initiatives were unconstitutional.
---> Timeline: Here’s when Michigan’s minimum wage will reach $14.97
Here’s a breakdown
Jan. 1 through Feb. 20
On Jan. 1, 2025, the minimum hourly wage will increase from $10.33 to $10.56 per hour.
The 85% rate for minors under 18 years old 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.
Beginning Feb. 21, 2025
| Effective date | Minimum hourly wage rate | Minimum hourly rate | Minimum average hourly tips | 85% |
|---|---|---|---|---|
| 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 |
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.
