The minimum wage in Michigan is $13.73 an hour as of October 2026. It's scheduled to rise to $15.00 an hour on 1 January 2027, and after that it'll be adjusted every year using a set formula.
These figures come from the U.S. Department of Labor's state minimum wage tables, checked in October 2026. Michigan has moved faster than almost any state over the last two years, so older pages and payroll notes are often out of date. Check the date on anything you're relying on.
Michigan rates at a glance
| What | Rate (as of October 2026) |
|---|---|
| Standard minimum wage | $13.73 an hour |
| Tipped employees, minimum cash wage | $5.49 an hour |
| Maximum tip credit | $8.24 an hour |
| Scheduled rate from 1 January 2027 | $15.00 an hour |
| Overtime | After 40 hours a week |
The state law applies to employers of 2 or more employees. It excludes employment covered by the federal Fair Labor Standards Act unless the state rate is higher than the federal one, and at $13.73 against $7.25, it's higher. So for practical purposes, Michigan's rate is the one you pay.
The jump people haven't caught up with
Look at the history and you'll see why so many Michigan employers are confused. The U.S. Department of Labor's table shows the state at $10.33 in 2024. As of October 2026 it's $13.73, with $15.00 due on 1 January 2027. That's a far bigger move in a short time than the slow climb of the previous decade.
| Year | Michigan minimum wage |
|---|---|
| 2014 and 2015 | $8.15 |
| 2016 | $8.50 |
| 2017 | $8.90 |
| 2018 | $9.25 |
| 2019 to 2021 | $9.65 |
| 2022 | $9.87 |
| 2023 | $10.10 |
| 2024 | $10.33 |
| As of October 2026 | $13.73 |
| From 1 January 2027 | $15.00 |
Tipped pay in Michigan is changing every year
Here's the insight most guides skip. Michigan's minimum cash wage for tipped employees isn't fixed. The U.S. Department of Labor notes it's scheduled to increase every year until it reaches half of the state minimum wage in 2031. So the $5.49 figure is a snapshot, not a settled number.
- Pay at least $5.49 an hour in cash wages to tipped staff, as of October 2026.
- Total each employee's tips for the pay period.
- Check cash wages plus tips reach $13.73 for every hour worked.
- Top up any shortfall in the same pay period.
- Update both the cash wage and the full minimum each time the schedule moves.
If your team pools tips, my tip pooling guide covers how that usually works.
How Michigan compares with nearby states
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Michigan | $13.73 |
| Illinois | $15.00 |
| Ohio | $11.00 for employers with annual gross receipts of $405,000 or more |
| Indiana | $7.25 |
| Federal | $7.25 |
If you employ people in more than one state, the rate follows where they work. A business near the Ohio border could be paying staff on either side under very different rules.
Getting payroll ready for 1 January 2027
A rise of this size touches more than the bottom pay band. When the floor moves to $15.00, anyone currently paid between $13.73 and $15.00 has to move too, and staff just above them will notice the gap closing. It's worth deciding now whether you'll keep any differential for supervisors or longer-serving staff, rather than working it out in the first week of January.
- List everyone paid under $15.00 an hour today, including part-time and seasonal staff.
- Update their rates in your payroll system so the first January pay run is right.
- Recheck tipped staff, because both the full minimum and the tipped cash wage will have moved.
- Review overtime budgets, because overtime is worked out from the higher base rate.
- Tell staff in writing what their new rate is and when it starts.
If you use a payroll provider, check they've loaded the 2027 rate rather than assuming they have. A wrong first pay run is cheap to fix and expensive to ignore.
What the tables don't show
The U.S. Department of Labor says its state tables don't show subminimum rates for minors or students, training wages for new hires, or local rates set above the state's. If you employ young workers or trainees in Michigan, check the specific rule for them before applying the headline rate. The same table also leaves Michigan's definition of a tipped employee as "not specified", unlike the federal line of more than $30 a month, so don't assume the federal test carries over. When in doubt, pay the full $13.73 until you've confirmed the tipped rules apply.
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What Michigan employers should do now
- Confirm everyone is on at least $13.73 an hour today.
- Budget for $15.00 an hour from 1 January 2027 and update payroll before the first pay run.
- Review tipped staff pay every time the cash wage schedule changes.
- Keep accurate hours and tip records for every pay period.
- Pay overtime after 40 hours a week. My overtime laws guide covers who's exempt.
My verdict
Michigan has gone from a slow climber to one of the fastest-rising states, and $15.00 is only a couple of months away. If you're still paying anyone near the old rates, fix it now, and tell your managers so nobody hires on an outdated figure. And treat the tipped cash wage as a moving target until 2031, because it'll keep rising every year until it reaches half of the full minimum.
Frequently asked questions
What is the minimum wage in Michigan right now?
It's $13.73 an hour as of October 2026.
When does Michigan's minimum wage go to $15?
It's scheduled to rise to $15.00 an hour on 1 January 2027, then be adjusted every year using a set formula.
What is the tipped minimum wage in Michigan?
The minimum cash wage is $5.49 an hour with a maximum tip credit of $8.24, as of October 2026.
Will Michigan's tipped wage go up?
Yes. It's scheduled to rise every year until it reaches half of the state minimum wage in 2031.
Is Michigan's minimum wage higher than the federal minimum wage?
Yes. Michigan's $13.73 is well above the federal $7.25, so Michigan's rate is the one covered employers pay.
When is overtime due in Michigan?
The U.S. Department of Labor lists Michigan's premium pay rule as weekly, after 40 hours.
Which employers does Michigan's minimum wage law cover?
Employers of 2 or more employees, according to the U.S. Department of Labor's state table.
