Starting to take effect on January 1, 2022 the minimum wage in Michigan:
- Will increase from $9.65 to the new rate of $9.87. This is a a $0.22 increase from the current rate, and the first increase in Michigan since 2020, before the COVID-19 pandemic.
- The 85% rate for minors aged 16 and 17 will increase from $8.20 to $8.39 per hour. This is a $.019 increase from the current rate.
- Tipped employees rates of pay will increase from $3.67 to $3.75 per hour. This is a $.08 increase from the current rate.
- The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.
Current Michigan law requires annual increases in the minimum hourly wage on January 1 of each year, up to $12.05 through 2030. Although the law also states that when the unemployment rate in Michigan exceeds 8.5% for the calendar year before the planned increase, the annual increase with automatically be delayed and there will be no increase in the minimum wage for that year. In 2020, due to the rate reaching 9.9%, the state of Michigan did not have an increase in the minimum wage for 2021.
A copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster, may be obtained for free by visiting Michigan.gov/wagehour. Contact us if you have any questions about the Michigan minimum wage increase.