Michigan Employees Get a Pay Raise With New Minimum Wage

Seeing more money on your paycheck is always good news and that's what will happen soon for some employees in Michigan. The state Department of Labor and Economic Opportunity announced that there will be an increase in minimum wage. The minimum hourly wage increase will also increase pay for tipped employees and increase base pay for 16-and 17-year-olds as well.

Minimum Wage Increase

Michigan's Improved Workforce Opportunity Wage Act of 2018 establishes an annual schedule of increases. According to Michigan.gov, Michigan's minimum wage rate will increase from $10.10 to $10.33 per hour. Tipped employees will see a pay increase from $3.84 to $3.93 an hour. The base pay for minors aged 16- and 17-years-old will change from $8.59 to $8.78.

Get our free mobile app

When Will Workers See the Pay Increase?

Minimum wage is set to increase on January 1st, 2024. And, minimum wage could jump higher depending on the results of a court ruling. A $15 per hour minimum wage initiative is heading to court in December. If passed, the initiative would gradually increase the Michigan minimum wage to $15 per hour by 2027. With a $1 increase per year starting in 2024.

Michigan's living wage still higher than minimum wage

The minimum wage increase will help workers see more money on their paycheck, but still does not meet the state's living wage. According to MLive, the pay needed to support one person working full time is $16.27 per hour. And compared to other states' minimum wage pay, Michigan has some work to do. 26 of 30 states and Washington, D.C., had higher minimum wages than Michigan, according to the U.S. Department of Labor.