Michigan Minimum Wage 2025: Detailed Breakdown and Rates

Key Takeaways

• Michigan’s minimum wage rose to $12.48/hour on February 21, 2025, with planned increases to $15 by 2027.
• Special rates apply for minors, tipped employees, and young workers in training with distinct wage percentages.
• Wage hikes may pause if unemployment hits 8.5%+, and yearly CPI adjustments start from 2028.

Michigan’s Minimum Wage in 2025: What Workers, Employers, and Immigrants Need to Know

Michigan’s minimum wage has changed significantly in 2025, affecting workers, employers, and newcomers to the state. These changes follow a Michigan Supreme Court decision and new laws passed by the state legislature. Understanding these updates is important for anyone working or planning to work in Michigan, including immigrants who may be new to the state’s labor rules. Here’s a detailed look at what’s changed, why it matters, and what to expect in the coming years.

Who is affected?
All workers in Michigan, including U.S. citizens, immigrants, and temporary workers, are impacted by the new minimum wage laws. Employers in every industry must follow these rules, especially those in hospitality, retail, and food service, where many immigrants find their first jobs.

What changed?
On February 21, 2025, Michigan’s minimum wage jumped from $10.56 to $12.48 per hour. This is the largest single increase in recent years. The law also sets out further increases for 2026 and 2027, with the minimum wage reaching $15.00 per hour by January 1, 2027.

Where and when do these changes apply?
These new rates apply across Michigan, starting on the dates set by the law. The most important date for 2025 is February 21, when the $12.48 rate took effect. Employers and workers must follow these rates from the effective dates onward.

Why did the minimum wage change?
The changes come after a Michigan Supreme Court ruling in July 2024. The court said that earlier changes made by lawmakers to citizen-led ballot initiatives were not valid. This meant the original plans for higher wages and better paid sick leave had to be put back in place. However, the state legislature quickly passed new laws to speed up wage increases and adjust other rules, aiming to balance worker needs with business concerns.

How do these changes affect different groups?
The new minimum wage affects everyone working in Michigan, but some groups see special rules:

• Minors (ages 16 and 17): Paid 85% of the standard minimum wage.
• Tipped employees: Paid a lower base wage, with tips expected to make up the difference.
• Young workers in training: Can be paid a special training wage for the first 90 days.

Let’s break down these changes in detail.

Michigan Minimum Wage Breakdown for 2025

Standard Minimum Wage

• January 1, 2025: $10.56 per hour
• February 21, 2025: $12.48 per hour

This means that as of February 21, 2025, every worker in Michigan (unless they fall under a special category) must be paid at least $12.48 for every hour worked.

Minimum Wage for Minors

• Who qualifies? Workers aged 16 and 17
• Rate: 85% of the standard minimum wage
• As of February 21, 2025: $10.61 per hour

This lower rate is meant to help young workers get jobs while still ensuring fair pay.

Tipped Employees

• Who qualifies? Workers who regularly receive tips, such as servers and bartenders
• Tipped minimum wage: 38% of the standard minimum wage as of February 21, 2025
• Rate: $4.74 per hour

Employers must make sure that tipped workers earn at least the full minimum wage ($12.48) when tips are included. If tips plus the base wage do not reach this amount, the employer must make up the difference.

Training Wage

• Who qualifies? Newly hired workers aged 16 to 19
• Rate: $4.25 per hour for the first 90 days of employment

This training wage gives employers flexibility to hire young, inexperienced workers and help them learn on the job.

Scheduled Increases: 2026 and Beyond

Michigan’s minimum wage will continue to rise over the next several years. Here’s what’s planned:

• January 1, 2026: Minimum wage increases to $13.73 per hour. Tipped wage rises to 40% of the minimum wage.
• January 1, 2027: Minimum wage reaches $15.00 per hour. Tipped wage rises to 42% of the minimum wage.
• From 2028 onward: Minimum wage will be adjusted each year based on the Consumer Price Index (CPI) for the Midwest. This means wages will go up if the cost of living rises.
• Tipped wage percentages: These will increase each year until they reach 50% of the minimum wage by 2031.

Summary Table: Michigan Minimum Wage and Tipped Wage (2025-2031)

Why Did Michigan’s Minimum Wage Change in 2025?

The Role of the Michigan Supreme Court

In July 2024, the Michigan Supreme Court ruled that changes made by lawmakers to the 2018 citizen-led minimum wage and paid sick leave initiatives were not valid. The original initiatives called for a higher minimum wage and the end of the tip credit (which allows employers to pay tipped workers less than the standard minimum wage).

Legislative Action in 2025

After the court’s decision, the Michigan legislature acted quickly. On February 20, 2025, lawmakers passed bipartisan bills to:

• Speed up the minimum wage increases, reaching $15.00 per hour by 2027 (one year earlier than planned).
• Keep the tip credit but raise the tipped wage over time.
• Adjust paid sick leave rules to be less strict for businesses.

Governor Gretchen Whitmer signed these bills into law on February 21, 2025. The new laws aim to balance the needs of workers and businesses, especially in industries like restaurants and hotels.

What Do These Changes Mean for Immigrants and Newcomers?

Many immigrants start their working lives in Michigan in jobs that pay minimum wage, such as in restaurants, hotels, cleaning, or retail. Here’s what the new rules mean for them:

• Higher Starting Pay: Newcomers can expect a higher base wage, making it easier to cover basic living costs.
• Tipped Jobs: Many immigrants work in tipped positions. The gradual increase in the tipped wage means more stable income, even if tips are low.
• Youth and Training Jobs: Young immigrants or those with little work experience can still find entry-level jobs at the training wage, which helps them get started in the workforce.
• Annual Adjustments: From 2028, the minimum wage will rise with the cost of living, helping workers keep up with rising prices.

For immigrants, these changes can make Michigan a more attractive place to live and work, offering better pay and more predictable wage growth.

What Employers Need to Do

Employers in Michigan must follow the new minimum wage rules. Here’s what they need to keep in mind:

• Update Payroll: Make sure all workers are paid at least $12.48 per hour from February 21, 2025.
• Check Tipped Wages: For tipped employees, ensure that their total pay (wages plus tips) meets or exceeds the minimum wage. If not, the employer must pay the difference.
• Youth and Training Wages: Employers can pay the training wage to eligible young workers for the first 90 days, but must switch to the regular rate after that.
• Plan for Future Increases: Employers should prepare for higher payroll costs in 2026 and 2027, and for annual adjustments from 2028 onward.
• Monitor Unemployment Rates: If Michigan’s unemployment rate is 8.5% or higher in the previous year, the scheduled minimum wage increase will not take effect. This rule gives businesses some relief during tough economic times.

Employers who do not follow these rules can face fines and other penalties.

Stakeholder Perspectives

Business Groups

The Michigan Restaurant & Lodging Association (MRLA) played a key role in shaping the new laws. The group wanted to keep the tip credit, which lets restaurants pay servers a lower base wage as long as tips make up the difference. MRLA argued that removing the tip credit would hurt small businesses and lead to higher prices or job losses.

Worker Advocates

Labor groups and worker advocates supported the faster wage increases but were divided on the tip credit. Some wanted all workers, including those who get tips, to earn the full minimum wage from their employer. Others accepted the compromise, noting that the tipped wage will rise to 50% of the minimum wage by 2031.

State Leaders

Governor Gretchen Whitmer called the new laws a “bipartisan compromise” that helps workers while supporting businesses. She said the changes would make Michigan’s economy stronger and fairer for everyone.

Special Rules and Exceptions

• Unemployment Safeguard: If Michigan’s unemployment rate is 8.5% or higher in the previous year, the scheduled minimum wage increase will not happen. This rule is meant to protect businesses during economic downturns.
• Paid Sick Leave: The new laws also adjusted paid sick leave rules, making them less strict for businesses while still giving workers some protection.
• Annual CPI Adjustments: From 2028, the minimum wage will go up each year based on the Consumer Price Index for the Midwest. This helps wages keep up with inflation.

Official Resources for More Information

For the most accurate and up-to-date information on Michigan’s minimum wage, workers and employers can visit the Michigan Department of Labor and Economic Opportunity (LEO) website. This site provides official wage rates, updates, and guidance for both employees and businesses.

Employers can also check the Michigan Restaurant & Lodging Association (MRLA) for industry-specific advice, and the state legislature’s website for the full text of bills like Senate Bill 8 (SB 8), which was signed into law on February 21, 2025.

What Should Workers and Employers Do Next?

For workers:

• Check your pay stubs to make sure you are being paid at least the new minimum wage.
• If you are a tipped worker, add your base wage and tips to see if you reach the minimum wage. If not, talk to your employer.
• If you are under 18 or in a training job, know your rights about lower wage rates.

For employers:

• Update your payroll systems to reflect the new rates.
• Train managers and HR staff on the new rules.
• Plan for future wage increases and budget accordingly.
• Stay informed about unemployment rates, as they can affect wage increases.

Looking Ahead: Michigan’s Minimum Wage and the Future

Michigan’s minimum wage is set to rise steadily through 2027 and will keep pace with inflation after that. For immigrants, this means better pay and more security as they build new lives in the state. For employers, it means planning for higher labor costs but also the chance to attract and keep good workers.

As reported by VisaVerge.com, these changes put Michigan among the states with the fastest-growing minimum wages, reflecting both legal action and political compromise. The gradual increase in the tipped wage, in particular, is seen as a middle ground between worker advocates and business groups.

For anyone working or hiring in Michigan, staying up to date on these changes is key. The Michigan Department of Labor and Economic Opportunity remains the best source for official information.

Key Takeaways:

• Michigan’s minimum wage rose to $12.48 per hour on February 21, 2025, with more increases coming in 2026 and 2027.
• Special rules apply for minors, tipped workers, and young workers in training.
• The tipped wage will rise to 50% of the minimum wage by 2031.
• Wage increases may be paused if unemployment is very high.
• Both workers and employers should check official resources for the latest updates.

By understanding these changes, Michigan’s workers—including immigrants and newcomers—can make informed decisions about their jobs and pay. Employers can stay compliant and plan for the future. These new wage laws mark a big step forward for Michigan’s workforce and economy.

Learn Today

Minimum Wage → The lowest hourly pay rate employers must legally pay workers in Michigan.
Tipped Employees → Workers who earn tips and receive a lower base wage supplemented by customer tips.
Training Wage → A reduced hourly rate paid to young or inexperienced workers for their first 90 days.
Consumer Price Index (CPI) → An economic measure that tracks changes in the cost of living over time.
Tip Credit → A system allowing employers to pay tipped workers less base wage if tips make up the difference.

This Article in a Nutshell

Michigan’s minimum wage increased significantly in 2025 to $12.48/hr, benefiting workers including immigrants. Planned raises reach $15/hr by 2027, with special rules for tipped and young employees, while future hikes depend on unemployment and inflation adjustments.
— By VisaVerge.com