Michigan Minimum Wage to Increase 10% Starting Jan 1

Michigan’s minimum wage will get an increase of nearly 10% on January 1st of 2026. This will give an average of a 10% increase if you earn the state’s minimum. Michigan’s minimum hourly wage will rise to 12.48 and rise to 13.73 in an hour. adding real dollars to your earnings during a time in which rent, food and gasoline continue to get more costly.

The increase is due to the state’s Improved Workforce Opportunity Wage Act which provides a precise schedule for wage hikes to ensure that you do not have to work at the same amount every year. If you’re a tipping worker, your basic wage will increase too for minors, and a lot of low-wage workers throughout Michigan will benefit from an increase as well. Although you may not be able to feel rich immediately, but the extra money per hour could assist you in paying your bills as well as reduce debt. It can also help you create a savings cushion when you reach 2026.

Michigan Minimum Wage to Increase 10%

From January 1, 2026 Michigan’s minimum wage increases to 12.48 up to 13.73 per hour. That represents a roughly 10% increase for the vast majority of hourly workers governed by the state law. This is applicable to numerous jobs in food, retail, services, caregiving as well as other responsibilities that require an hour subject to an exemption in federal or state laws.

This increase in pay comes as part of a longer-term plan to raise Michigan’s minimum wage up to 15 dollars per hour by 2027. They will then connect future increases to inflation so that your salary will be more consistent with the costs of living. This means for you, that this isn’t an isolated increase and is a step on an ongoing path to higher earnings, if you are working at a minimum wage or in low-wage jobs.

Michigan Minimum Wage Overview

Aspect	Overview
Minimum wage to be increased (Jan. 1st 2026)	The standard rate increases by 12.48 and 13.73 per hour, which is about an increase of 10% for workers covered by.
Base pay for a worker who is tipped	The minimum wage for tips increases upwards to 5.49 an hour (40 percent of 13.73) Employers are obliged to ensure that tips plus wages are at the minimum.
The Youth Wage (16-17 years)	Youth rates of 85% increase up to 11.67 per hour, as the minimum wage increases to.
The cost of training	Training wages remain for the time being at 4.25 each hour to those less than 20 in the first 90 days of starting a new job.
Future wages	The minimum wage in the state is scheduled to reach 15.00 per hour in January. 1, 2027. and then monitor inflation thereafter.
Law that underlies the change	The changes are governed by the Michigan’s Improved Workforce Opportunity Wage Act and is enforced by Michigan’s Wage and Hour Division.
Official Website	https://www.michigan.gov/som

What effect will the increase of 10% impacts your pay

If your pay increases to 12.48 and 13.73 for an hour you’ll get an additional 1.25 per hour you spend at work. If you are working 40 hours per week for the entire year long, this adds up at more than 22,5002 annual gross wages prior to taxes. This is money to use for necessities and debts, or for savings.

Although inflation has driven up costs, a higher minimum wage will assist you in avoiding falling behind in the event that food, housing transportation, and other cost continue to increase. There may be shifts at work including updated pay notices, brand new posters for break rooms, and even changes to your schedule or staffing levels as employers react to a higher minimum wage.

What does this mean if are a worker who is tipped

If you’re employed in a job that is tipped, like bartending or serving the base cash rate will rise too. As of the 1st of January, 2026 the minimum wage for tipped workers is in Michigan will be 5.49 per hour. This is 40% more than the new minimal wage, which is 13.73 . To maintain that less base amount, the employer needs to make sure that your tips add your total hourly earnings to the minimum minimal wage.

This means that if your tips are reported as not being sufficient your employer is required to pay the difference, so you get the full 13.73 an hour. It is important to keep a detailed record of your time and tips and also check your pay stubs regularly so that you are able to spot any gaps and alert your employer in the event that your wages do not conform to what the law stipulates.

Specific rules for minors as well as training wage

If you’re between the ages of 16 and 17 You could receive 85 percent of the total minimum wage as per Michigan law. The regular minimum wage rises to 13.73 and this youth rate of 85% rises up to 11.67 per hour, meaning you still get a significant rise in your earnings.

Michigan also permits the reduced “training pay rate” which is 4.25 an hour to new employees who are younger than 20 in the first 90 calendar days of being employed. This rate for training is not going to change until January 1, 2026. Once you have passed the 90-day period (and are no longer subject to the particular rules) then you are required to be paid at least the minimum wage for youth or the full minimum wage.

Future increases will be 15 per hour

The increase in the minimum wage for 2026 will not be the end of the road in Michigan. Based on the current schedule the statewide minimum wage will be 15.00 per hour from January 1st, 2027. This will give an additional raise when you’re making at or close to the minimum wage.

When the wage reaches 15 and increases in the future will be linked to inflation, so that your earnings do not stagnate as the prices increase. Workers who are tipped are also likely to see their basic wage slowly increase as a proportion of the standard minimum wage for a number of years and make your income less dependent on tips on their own.

How can you prepare for the rise in

This increase is a great moment to review at your budget carefully and alter your plans for 2026. It is possible to estimate your new income per month through multiplying 13.73 by your weekly average hours, and then multiplying by 4.33 to create an average month, and then see how much you’ll have to pay to cover your bills or savings. If you are a recipient of means-tested benefits You may want to see if the higher income you earn affects the amount you are eligible for or your copays, so that you do not get surprised when you get there.

If you own or run a small-sized company, you’ll need to make changes to your payroll system as well as time-keeping and notices of labor law prior to the January deadline. Plan your schedules, menu prices or service fees in advance will allow you to manage the higher cost of wages without any panic when the new rates are in place.

The year 2026 is beginning with a greater the minimum wage of Michigan–13.73 per hour. This is for the vast majority of covered workers, and a higher base for tipped, young and low-wage employees. The roughly 10% increase could make a huge difference in the way you live your day and will be especially important since the state will be moving toward the 15 minimum in 2027. The law also ties future increases to inflation, ensuring that your pay will not be a burden. Take advantage of this change to reevaluate your budget, look over your pay stubs with care and know your rights in order to maximize the money that comes to you in the coming year.

FAQ’s

1. What date will you start seeing the increase in your wages?

You will see your new 13.73 daily cost (or that is the right tipped rate or youth rate) on your first pay stub which covers hours you worked from or after January 1st 2026. If your pay slip has the previous 12.48 minimum amount after the date, it is best to speak to your employer or State Wage and Hour Division.

2. Do these increases apply to all jobs in Michigan?

The majority of hourly employees, including non-exempt ones are covered in Michigan are covered. However, certain workers might be considered differently under state or federal laws, for instance, certain farm, salaried or very small-employer positions. If you’re unsure if the minimum wage laws apply to your position then you should read the state’s FAQs or contact questions to the Michigan Wage and Hour Division directly.

3. What do you do if your employer will not make the minimum payment?

It is possible to start by bringing up the concern with your employer, or HR, and then sharing the official information from the state regarding the 2026 rates. If the issue isn’t solved, you’re entitled to the option of filing an employment complaint to the Michigan’s Department of Labor and Economic Opportunity and they can conduct an investigation as well as enforce the back pay when necessary.