LANSING, Mich — Michigan's minimum wage is set to increase twice in 2025 due to a recent Michigan Supreme Court ruling.
In July, the Michigan Supreme Court ruled to reinstate the Improved Workforce Opportunity Wage Act of 2018, which will increase Michigan's minimum wage over several years.
The ruling came after a legal battle over the law, which was the result of a 2018 petition drive that collected over 280,000 signatures. The Michigan Republican-led legislature chose to adopt the new law instead of putting it on the ballot but then watered the law down before passing it late in 2018.
In a ruling of 4-3, the Michigan Supreme Court ruled that the lawmakers violated the state constitution and reinstated the law to begin its increase of the minimum wage in 2025.
Tuesday, the Michigan Department of Labor and Economic Opportunity released the timeline for the minimum wage rate increase in 2025 and beyond. This schedule also includes a small increase of the minimum wage on Jan. 1, 2025, that is set to only last until the new minimum wage law takes effect on Feb. 21, 2025. Here's how that will look:
Minimum hourly wage rate from Jan. 1, through Feb. 20, 2025:
- Minimum hourly wage increases from $10.33 to $10.56 per hour
- Tipped employee rate of hourly pay increases from $3.93 to $4.01 per hour.
- 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.
- 85% rate for minors under the age of 18 will increase from $8.78 to $8.98 per hour.
On Feb. 21, 2025, the minimum wage will increase again, and by a much larger amount than the beginning of the year because of the Improved Workforce Opportunity Wage Act.
Minimum hourly wage rate Feb. 21, 2025, and beyond:
Feb. 21, 2025
- Minimum hourly wage rate increases to $12.48
- Minimum hourly wage rate for tipped employees increases to $5.99
- Minimum reported average hourly tips increases to $6.49
- The 85% rate increases to $10.61
Feb. 21, 2026
- Minimum hourly wage rate increases to $13.29
- Minimum hourly wage rate for tipped employees increases to $7.97
- Minimum reported average hourly tips increases to $5.32
- The 85% rate increases to $11.30
Feb. 21, 2027
- Minimum hourly wage rate increases to $14.16
- Minimum hourly wage rate for tipped employees increases to $9.91
- Minimum reported average hourly tips increases to $5.32
- The 85% rate increases to $12.04
Feb. 21, 2028
- Minimum hourly wage rate increases to $14.97
- Minimum hourly wage rate for tipped employees increases to $11.98
- Minimum reported average hourly tips increases to $2.99
- The 85% rate increases to $12.72
Beginning in October of 2028, the state treasurer will set an adjusted minimum wage rate based on the rate of inflation. The new rate will be published on Nov. 1 of the year and goes into effect the following year on Feb. 21.
After 2028, tipped worker minimum hourly wage rates will continue to increase until they are equal to 100% of the minimum hourly wage rate. In 2029, it will be 90% of the minimum hourly wage rate and in 2030, it will be 100% of the minimum hourly wage rate. Both of those increases will go into effect on Feb. 21 of their respective years.
You can learn more about the wage increases here.
