Michigan Minimum Wage Increase Takes Effect January 1, 2026

Dec 29, 2025

Effective January 1, 2026, Michigan will raise its minimum wage to $13.73 per hour. The base hourly wage for tipped employees will also increase, rising to $5.49 per hour.

This wage requirement applies to employers with two or more employees, making it important for affected businesses to review payroll practices, budgeting, and wage compliance ahead of the new year.

The increase was enacted through Senate Bill 8 (SB 8), which was signed into law on February 21, 2025.

What This Means for Employers

Employers with two or more employees should prepare for higher hourly wage requirements beginning January 1, 2026. This includes updating payroll systems, reviewing employee pay rates, and ensuring tipped employees are paid at or above the new $5.49 base wage, with tips bringing total earnings up to at least the standard minimum wage.

Now is also a good time to review labor budgets, update wage notices, and communicate changes to employees ahead of the effective date. Taking proactive steps can help avoid compliance issues and ensure a smooth transition when the new wage rates take effect.

Disclaimer:

This content is provided by Accurate Pay Systems (APS) for general informational purposes only. Laws and regulations are subject to change, and while APS strives to provide accurate and timely information, we make no guarantees that the content is complete, current, or applicable to your specific situation. You are solely responsible for ensuring compliance with all applicable federal, state, and local laws. APS assumes no liability for actions taken or decisions made based on the information provided in this content.

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