Minimum wage in Alaska, 2000–2027
- Minimum wage in 2026
$14 an hour1
In force since Jul 1, 2026.
- On January 1, 2027
$14 an hour, no change2
No increase on January 1; then $15 from Jul 1, 2027.
- Tipped employees
$14 an hour in cash3
Tipped employees get the full minimum wage before tips.
- Overtime
Premium pay after 8 hours a day or 40 hours a week4
The Alaska minimum wage rose from $5.65 in 2000 to $14 in 2026, then $15 from Jul 1, 2027
Line chart of the Alaska minimum wage against the federal minimum: $5.65 in 2000, $7.75 in 2010, $10.19 in 2020, $14 in 2026, and $14 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Alaska
At $14 an hour for 40 hours a week, a new employer with 10 staff pays $29,120 in wages and $2,899 on top (10.0%) in payroll taxes and workers' comp.
- Wages (2,080 paid hours a year)
- $29,120
- Social Security (employer share)6.2%6 of $29,120
- $1,805
- Medicare (employer share)1.45%7 of $29,120
- $422
- Workers' compensation (benchmark index rate)$1.16 per $100 of payroll10
- $338
- Total a year
- $32,019
If you also offer single health coverage, the average employer here pays about $8,699 more a year: a $10,630 average premium11 less $1,931 paid by the employee11.
Frequently asked questions
What is the minimum wage in Alaska in 2026?
$14 an hour since Jul 1, 2026: $29,120 a year at full time.
What will the minimum wage be in Alaska in 2027?
$14 an hour on January 1, 2027, the same as in 2026 ($15 from July 1, 2027): $29,120 for a full-time year.
What is the minimum wage for tipped employees in Alaska?
$14 an hour before tips: Alaska allows no tip credit.
How much does a minimum-wage employee cost an employer in Alaska?
About $32,019 a year full time at $14: $29,120 of pay plus $2,899 on top, $2,561 in payroll taxes and $338 in workers' comp, before any health coverage.
How has the Alaska minimum wage changed since 2000?
The Alaska minimum wage rose from $5.65 in 2000 to $14 in 2026, then $15 from Jul 1, 2027. On the way: $7.75 in 2010 and $10.19 in 2020, per the U.S. DOL.
When do Alaska employers have to pay overtime?
The U.S. DOL lists Alaska's premium pay as «Daily - 8, Weekly - 40», at one and one-half times the regular rate unless otherwise specified.
More minimum wage and employer cost pages
Employer costs in Alaska
States with a similar minimum wage
Data and rules for every state
Sources
The 11 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- Alaska Department of Labor and Workforce Development labor.alaska.gov/lss/whhome.htm“As of July 1, 2026, The Alaska minimum wage is increasing from $13.00 to $14.00 per hour.”
- Alaska Department of Labor and Workforce Development labor.alaska.gov/news/2025/news25-11.htm“It will subsequently increase to $14.00 on July 1, 2026, and to $15.00 on July 1, 2027.”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees full state minimum wage before tips … Alaska $14.00”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Alaska … Basic Minimum Rate (per hour): $14.00 … Premium Pay After Designated Hours 1 : Daily - 8, Weekly - 40 … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Alaska 2.10 2.10 2.10 2.80 3.40 3.60 3.85 … Alaska 3.85 4.30 4.75 4.75 4.75 5.25 5.65 … Alaska 5.65 5.65 5.65 7.15 7.15 7.15 7.15 … Alaska 7.15 7.15 7.15 7.75 7.75 7.75 7.75 … Alaska 7.75 8.75 9.75 9.80 9.84 10.19 … Alaska 10.19 10.34 10.34 10.85 11.73” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … AK … 1.00%” “AK … $54,200”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $1.00-$1.25 … State Index rate Percent of study median … 20 21 Alaska 1.16 106%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Alaska 10,630 -- 10,945 12,774 12,236 9,377 11,082 10,536” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Alaska 1,931 2,960 -- 2,340 1,946 1,876 1,866 1,945”