- Pennsylvania pay rates at a glance
- The $135 test most owners skip
- The tip records Pennsylvania asks you to keep
- Service charges are not tips in Pennsylvania
- Breaks, paydays and work certificates
- How to check a tipped worker's pay, step by step
- Pennsylvania against its neighbours
- Common Pennsylvania payroll mistakes
- My verdict
- Frequently asked questions
The minimum wage in Pennsylvania is $7.25 an hour as of October 2026, the same as the federal rate. Tipped staff can be paid a cash wage of $2.83 an hour, with a tip credit of up to $4.42, but only if they customarily and regularly get more than $135 a month in tips.
Pennsylvania has its own law, the Minimum Wage Act of 1968, but its hourly figure matches the federal floor, so most neighbouring states pay a lot more. This guide uses the U.S. Department of Labor's state tables and two sections of the Pennsylvania Code (34 Pa. Code sections 231.1 and 231.34), all read in October 2026.
Pennsylvania pay rates at a glance
| Rule | Pennsylvania (as of October 2026) |
|---|---|
| Basic minimum wage | $7.25 an hour |
| Cash wage for tipped employees | $2.83 an hour |
| Maximum tip credit | $4.42 an hour |
| Tips needed to count as a tipped employee | More than $135 a month |
| Overtime | After 40 hours in a workweek |
Those figures come straight from the federal tipped table. The cash wage plus the tip credit adds up to the full $7.25, which is the whole point: tips can top up the hourly wage, but they can't replace it.
The $135 test most owners skip
This is the detail people miss. Pennsylvania's tip test is higher than the federal one. The state code defines a tipped employee as someone in an operation where they customarily and regularly receive more than $135 a month in tips. The federal table lists more than $30 a month for many states, so a rule of thumb picked up elsewhere can leave you paying a Pennsylvania worker the wrong rate.
The code also says what customarily and regularly means: more often than occasional, though it can be less than constant. So a host who gets the odd tip at a private party doesn't become a tipped employee, and you can't drop their pay to $2.83 for those shifts.
The tip records Pennsylvania asks you to keep
Section 231.34 of the code lists extra payroll records for every employee whose wage is partly made up of tips. You need:
- A symbol or letter on the pay records showing which staff are paid partly by tips.
- The weekly or monthly tips each employee reports to you, which can be the IRS Form 4070 reports.
- The amount by which you treat their wages as increased by tips. Each time the hourly tip credit you take changes from the week before, you must tell the employee in writing.
- Hours worked each day in jobs where the person doesn't get tips, and the straight-time pay for those hours.
- Hours worked each day in jobs where they do get tips, and the straight-time earnings for those hours.
- If you run a tip pool, the name and position of everyone in it and what each person got from it.
That last line was added when the section was amended in 2022. My guide to tip pooling explains how shared pools work and who can be part of one.
Service charges are not tips in Pennsylvania
The state code defines a service charge as a mandatory fee an employer charges a customer for services an employee gives. It defines tips as voluntary payments from a guest, patron or customer. The difference matters. A compulsory fee on a group booking is a service charge, so it doesn't count towards a worker's tips for the $135 test or the tip credit.
Breaks, paydays and work certificates
- Breaks for adults: Pennsylvania isn't on the U.S. Department of Labor's list of states that require a meal period for adult private-sector workers. Federal law doesn't require breaks either, but short breaks of about 5 to 20 minutes that you do offer count as paid work time.
- Paydays: the federal payday table leaves the Pennsylvania row blank, so check the state's own wage payment law before you change pay frequency.
- Under-18s: the federal certificate table shows Pennsylvania requires an employment certificate for workers under 18, issued through the school.
How to check a tipped worker's pay, step by step
- Confirm the worker's job customarily and regularly brings in more than $135 a month in tips. If not, pay the full $7.25.
- Collect their tip reports for the week. Form 4070 is a common way to do it.
- Add the cash wage you paid to the tips they reported for the hours they worked in tipped jobs.
- If that total falls short of $7.25 for any hour, pay the difference in the same pay period.
- Pay the full $7.25 for any hours spent in a job where they don't get tips, and record those hours separately.
- If your tip credit changes from last week, tell the employee in writing.
Pennsylvania against its neighbours
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Pennsylvania | $7.25 |
| New Jersey | $15.92 |
| Maryland | $15.00 |
| Delaware | $15.00 |
| Ohio (employers with $405,000 or more in yearly gross receipts) | $11.00 |
| West Virginia (6 or more employees at one location) | $8.75 |
If you hire across the river in New Jersey, the gap is more than double. My New Jersey minimum wage page covers the rate there, and the federal minimum wage guide explains who federal law covers.
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Common Pennsylvania payroll mistakes
- Paying $2.83 to someone who doesn't regularly get more than $135 a month in tips.
- Counting a compulsory service charge as tips.
- Not telling tipped staff in writing when the hourly tip credit changes.
- Leaving tip pool names and payouts out of the records.
- Hiring a 16-year-old without the school-issued employment certificate.
My verdict
Pennsylvania looks simple because the number is $7.25, and that's where owners get caught. The rules that trip people up are the tipped ones: the $135 a month test, the written notice when the credit changes and the tip pool records. Get those three right and you've covered the part of Pennsylvania wage law that's different from the federal basics.
Frequently asked questions
What is the minimum wage in Pennsylvania right now?
It's $7.25 an hour as of October 2026, the same as the federal minimum wage, with overtime after 40 hours in a workweek.
What is the tipped minimum wage in Pennsylvania?
The cash wage for tipped staff is $2.83 an hour and the maximum tip credit is $4.42, so tips must bring the worker up to at least $7.25 an hour.
Who counts as a tipped employee in Pennsylvania?
Someone in an operation where they customarily and regularly receive more than $135 a month in tips, under 34 Pa. Code section 231.1.
Are service charges tips in Pennsylvania?
No. The state code treats a mandatory fee charged to a customer as a service charge, while tips are voluntary payments from the customer.
Do workers under 18 need a work permit in Pennsylvania?
Yes. The U.S. Department of Labor's certificate table shows Pennsylvania requires an employment certificate for minors under 18, issued through the school.
