Detroit Regional Chamber > Advocacy > Minimum Wage to Increase on Jan. 1, 2026

Minimum Wage to Increase on Jan. 1, 2026

December 24, 2025

On Jan. 1, 2026, Michigan’s minimum wage rate will increase from $12.48 to $13.73 per hour as set by Michigan’s Improved Workforce Opportunity Wage Act which establishes the annual schedule of increases.

The tipped employee rate of hourly pay increases to $5.49 per hour, 40% of the full minimum wage, provided the employee receives at least $8.24 in tips.

Future Wage Rate Increases

On Feb. 21, 2025, key changes to Michigan’s minimum wage laws went into effect, with Senate Bill 8 allowing an incremental increase to the minimum wage of $15 per hour by 2027.

Learn More

For more information about Michigan’s minimum wage and overtime laws, visit Michigan.gov/MinimumWage.