The adult minimum wage in Michigan is $12.48 per hour as of Feb 21, 2025. For minors, the minimum pay is $10.61 per hour, which is 85% of the regular minimum wage. Michigan’s tipped minimum, which is 38% of the regular minimum wage, will be $4.74 per hour as of February 21, 2025.
For employees like wait staff and bartenders who are anticipated to receive the majority of their pay in tips, the tipped minimum wage is the lower hourly rate. If their tips fall short of the standard minimum wage, their owner is legally grateful to cover the shortfall. Sometimes, this is referred to as the tip credit. In agreement. Michigan will have a minimum wage of $13.73 per hour on January 1, 2026. Jan. 1, 2027, will see another hike.
Michigan Minimum Wage Increase 2025
Compared to the prior rate of $10.56 per hour, which was in effect from January 1, 2025, to February 20, 2025, this is a significant increase. At this time, adolescents were entitled to $8.98 per hour, while tipped employees received $4.01 per hour. Michigan intends to raise minimum pay even more. Starting on January 1, 2026, the effective rates will be $13.73 per hour, and by January 1, 2027, they will be $15.00 per hour.
These revisions are in line with Michigan’s pledge to raise pay gradually while keeping the tip credit system in place. In 2025, Michigan will have complied with the FLSA’s exempt employee pay thresholds, which determine which employees fall into the exempt and non-exempt categories. Employees who are not exempt are paid less and are eligible to receive the state minimum wage.
For several years, there has been conversation over the minimum wage. Some individuals think that raising the minimum wage would make it easier for low-income workers to make ends meet. According to some, raising the minimum wage will result in job losses. On the influence of rising the minimum wage, however, there is no clear unanimity.
According to some research, raising the minimum wage may result in job losses, but other studies have found that it has little to no effect on employment. For many years to come, the minimum wage controversy is probably going to go on. Nonetheless, the reality still stands that a family cannot be sustained only on the existing minimum wage.
Minimum Wage of Michigan 2025 – Overview
| Post Title | Michigan Minimum Wage Increase 2025 |
| Department | Department of labor & economic opportunity |
| State | Michigan |
| Minimum wage | $12.48 |
| Beneficiaries’ | Workers |
| Category | Finance |
| Year | 2025 |
| Official Portal | Michigan.gov |
What is minimum wage in Michigan 2025?
From February 21, 2025, the Michigan minimum wage was rate set at $18.48/ per for non-tipped workers and $5.99/ hour for tipped workers. Maintaining 85% rate of the minimum wage, minor below 18 will earn $10.61/ hour. For the training wage for young worker stands at $4.25/ hour. This is a vital rise from the last rate of $10.56 per hour real from Jan 1, 2025 to Feb 20, 2025. Throughout this period, the tipped worker wage were $4.01/ hour and minor were allowed to $8.98/ hour.
Michigan already plans to further rise in their minimum wage. The effective rate will increase by $13.73/ per from 1 Jan, 2026 and $15.00/ hour by 1 Jan 2027. These informs are affiliated to Michigan’s guarantee to gradually increase wage while continuing a structured tip credit system. Michigan Minimum wage city-wise
| Cities | Non-tipped employees | Tipped employees |
| Detroit | $12.48/hour | $5.99/hour |
| Grand rapids | $12.48/hour | $5.99/hour |
| Lansing | $12.48/hour | $5.99/hour |
| Ann arbor | $12.48/hour | $5.99/hour |
| Flint | $12.48/hour | $5.99/hour |
| Sterling heights | $12.48/hour | $5.99/hour |
| Warren | $12.48/hour | $5.99/hour |
| Dearborn | $12.48/hour | $5.99/hour |
| Livonia | $12.48/hour | $5.99/hour |
| Westland | $12.48/hour | $5.99/hour |
| Tylor | $12.48/hour | $5.99/hour |
| Farmington hills | $12.48/hour | $5.99/hour |
| Southfield | $12.48/hour | $5.99/hour |
| Troy | $12.48/hour | $5.99/hour |
| Novi | $12.48/hour | $5.99/hour |
| Oak park | $12.48/hour | $5.99/hour |
| Royal oak | $12.48/hour | $5.99/hour |
| Portage | $12.48/hour | $5.99/hour |
| Kalamazoo | $12.48/hour | $5.99/hour |
| Batter Creek | $12.48/hour | $5.99/hour |
| Muskegon | $12.48/hour | $5.99/hour |
| Holland | $12.48/hour | $5.99/hour |
| Saginaw | $12.48/hour | $5.99/hour |
| Bay city | $12.48/hour | $5.99/hour |
| Midland | $12.48/hour | $5.99/hour |
| Jackson | $12.48/hour | $5.99/hour |
| Ann arbor township | $12.48/hour | $5.99/hour |
| Canton township | $12.48/hour | $5.99/hour |
| Canton charter township | $12.48/hour | $5.99/hour |
| Clinton township | $12.48/hour | $5.99/hour |
Why minimum wage is increasing in Michigan?
A lengthy court battle led to Michigan’s minimum wage rises. A group called Michigan One Fair Wage attempted to have a petition initiative on the ballot in 2018 that would have abolished the tipped minimum wage and raised the minimum wage to $12 per hour by 2022. The petition’s content was accepted by the state Legislature, but it was modified to maintain the tipped minimum wage and postpone the hike to $12 per hour until 2030. The Michigan Supreme Court, however, declared in July 2024 that the Legislature’s “adopt and amend” strategy was unconstitutional because it did not let citizens to vote on the issue and evaded the petition initiative process. The court’s order stated that Michigan should adopt inflation-adjusted policies.
The minimum wage under the court-ordered wage scale would have increased to $12.48 per hour on February 21 and then progressively to $14.97 per hour in 2028. Additionally, the court decision would have led to the ultimate phase-out of the minimum wage with tips by 2030. In response to calls from restaurant and hospitality associations as well as certain tipping employees, Senate Bill 8 was passed in February. On Friday, Governor Gretchen Whitmer signed the bill into law, maintaining Michigan’s tipped minimum wage and implementing a new minimum pay scale.
Exemptions in minimum wages of Michigan
While Michigan’s minimum wage laws perfectly apply to worker aged 18 years & above who employed for businesses with 2 or more workers. There is definite exemption that apply by the Department of labor & economic opportunity:
- Tipped labors
- Executive, administrative and professional (EAP) employees.
- Employees with certain disabilities
- Minors between the age of 16 & 17 are entitled to minimum wage rate of $10.61/ hour.
- New hired worker in the middle of the age 16 and 19 are qualified to get a training wage of $4.25/ hour for the primary 90 days of employment.
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Ember Orion is a journalism student who loves to write about social security and government schemes. Ember’s dream is to become a top-level anchor in the USA.