Michigan’s minimum wage is set to increase twice in 2025. The first increase will take effect on Jan. 1, 2025, as part of the standard annual adjustment. A second increase will follow on Feb. 21, 2025, in response to a recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act.
From Jan. 1 through Feb. 20, 2025, Michigan’s minimum hourly wage will increase from $10.33 to $10.56 per hour. For minors under 18, the 85% rate will rise from $8.78 to $8.98 per hour. Tipped employees will see their hourly pay go up from $3.93 to $4.01 per hour. However, the training wage for newly hired employees under the age of 20, which remains set at $4.25 per hour for their first 90 calendar days of employment, will not change.
Minimum Hourly Wage Rate Effective Feb. 21, 2025, and Thereafter:
| Effective Date | Minimum Hourly Wage Rate | Tipped Employee | 85% Rate | |
| Minimum Hourly Rate | Minimum Reported Average Hourly Tips | |||
| 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 | $1.54 | $12.72 |
Starting in October 2028, the state treasurer will calculate an adjusted minimum wage rate each year based on the rate of inflation. This adjusted rate will be published by Nov. 1 of the same year and will take effect on Feb. 21 of the following 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 Date | Percentage of Minimum Hourly Wage Rate |
| Feb. 21, 2026 | 60% of the minimum hourly wage rate |
| Feb. 21, 2027 | 70% of the minimum hourly wage rate |
| Feb. 21, 2028 | 80% of the minimum hourly wage rate |
| Feb. 21, 2029 | 90% of the minimum hourly wage rate |
| Feb. 21, 2030 | 100% of the minimum hourly wage rate |
Further information regarding Michigan’s minimum wage and overtime laws, including frequently asked questions and the required employer poster, can be found at Michigan.gov.
Here to Help
By preparing for these changes and considering its implications carefully, businesses can better navigate the transition and continue to thrive in a changing regulatory landscape. If you would like to learn more about this ruling and its employer considerations, the pros at DM Payroll Solutions touched on this legislation earlier this year. If you need further clarification on the legislation or have questions on how this may impact your business, our payroll advisors stand ready to assist you – contact us today to learn more.
