Minimum wage in Michigan, 2000–2027
- Minimum wage in 2026
$13.73 an hour1
In force since Jan 1, 2026.
- On January 1, 2027
$15 an hour1
Up $1.27 from today.
- Tipped employees
$5.49 an hour in cash2
Employers may count up to $8.24 an hour of tips toward the minimum wage.
- Who it covers
Applicable to employers of 2 or more employees3
- Overtime
Premium pay after 40 hours a week3
The Michigan minimum wage rose from $5.15 in 2000 to $13.73 in 2026; $15 from Jan 1, 2027
Line chart of the Michigan minimum wage against the federal minimum: $5.15 in 2000, $7.40 in 2010, $9.65 in 2020, $13.73 in 2026, and $15 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Michigan
At $13.73 an hour for 40 hours a week, a new employer with 10 staff pays $28,558 in wages and $2,727 on top (9.5%) in payroll taxes and workers' comp. At the 2027 rate of $15 with 2026 payroll tax rates: $34,153 a year.
- Wages (2,080 paid hours a year)
- $28,558
- Social Security (employer share)6.2%5 of $28,558
- $1,771
- Medicare (employer share)1.45%6 of $28,558
- $414
- Workers' compensation (benchmark index rate)$0.90 per $100 of payroll9
- $257
- Total a year
- $31,285
If you also offer single health coverage, the average employer here pays about $6,260 more a year: a $8,230 average premium10 less $1,970 paid by the employee10.
Frequently asked questions
What is the minimum wage in Michigan in 2026?
$13.73 an hour since Jan 1, 2026: $28,558 a year at full time.
What will the minimum wage be in Michigan in 2027?
$15 an hour from Jan 1, 2027, after $13.73 an hour in 2026: $31,200 for a full-time year.
What is the minimum wage for tipped employees in Michigan?
$5.49 an hour in cash, with up to $8.24 of tips counted toward Michigan's $13.73.
How much does a minimum-wage employee cost an employer in Michigan?
About $31,285 a year full time at $13.73: $28,558 of pay plus $2,727 on top, $2,470 in payroll taxes and $257 in workers' comp, before any health coverage.
How has the Michigan minimum wage changed since 2000?
The Michigan minimum wage rose from $5.15 in 2000 to $13.73 in 2026; $15 from Jan 1, 2027. On the way: $7.40 in 2010 and $9.65 in 2020, per the U.S. DOL.
Which employers must pay the Michigan minimum wage?
Applicable to employers of 2 or more employees.
More minimum wage and employer cost pages
Employer costs in Michigan
States with a similar minimum wage
Data and rules for every state
Sources
The 10 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
- Michigan Department of Labor and Economic Opportunity michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/min-wage“Effective January 1, 2026, the minimum wage rate is $13.73 per hour.” “Effective January 1, 2027, the minimum wage rate is $15.00 per hour.”
- 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 a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) … Michigan15 $13.73 $8.24 $5.49 Not specified”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Michigan … Basic Minimum Rate (per hour): $13.73 … Applicable to employers of 2 or more employees … Premium Pay After Designated Hours 1 : 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“Michigan 1.25 1.25 1.60 2.20 2.90 3.10 3.35 … Michigan 3.35 3.35 3.35 3.35 3.35(e) 3.35(e) 5.15(e) … Michigan 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) … Michigan 6.95(e) 7.15(e) 7.40(e) 7.40(e) 7.40(e) 7.40(e) 7.40(e) … Michigan 8.15(e) 8.15(e) 8.50(e) 8.90(e) 9.25(e) 9.65(e) … Michigan 9.65(e) 9.65(e) 9.87(e) 10.10(e) 10.33(e)” “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” “Rates applicable to employers of two or more.”
- 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. … MI … 2.70%” “MI … $9,000”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $0.75-$1.00 … State Index rate Percent of study median … 36 38 Michigan 0.90 82%”
- 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 … Michigan 8,230 -- 8,262 8,369 7,747 8,384 8,384 8,193” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Michigan 1,970 -- 1,803 1,961 1,933 1,980 2,075 1,945”