Michigan’s minimum wage will increase twice next year, and then once annually each year after that.

The state’s minimum wage is currently $10.33. On Jan. 1, 2025, it will increase to $10.56. On Feb. 21, 2025, it will increase to $12.48. The minimum wage will continue to increase annually and reach $14.97 on Feb. 21, 2028.

Then, every October beginning in 2028, the state treasurer will calculate and adjust the minimum wage rate, increasing it by the rate of inflation. The adjusted minimum wage will be published by Nov. 1 and go into effect on Feb. 21 of the next year.

As of Oct. 2, 2024, tipped workers in Michigan earn 38% of the state’s minimum wage for a total of $3.93 an hour. The tip credit, or subminimum wage for tipped workers, will be phased out. On Feb. 21, 2030, tipped workers will be paid 100% of the minimum wage.

Michigan’s minimum wage increase schedule

On Feb. 21, 2029, the tipped minimum wage will be 90% of the minimum hourly wage rate.

On Feb. 21, 2030, the tipped minimum wage will be phased out completely and equal to the state minimum wage.

—> Read: New polling shows where Michigan voters stand on minimum wage ruling, tipping habits

Workers under the age of 18 may be paid 85% of the minimum hourly wage. Newly hired employees under 20 years old may be paid $4.25 per hour for the first 90 calendar days of their employment.

Why is this happening now?

The changes to Michigan’s minimum and subminimum wages are coming because of a major ruling from the Michigan Supreme Court.

The court ruled that that it was unconstitutional for the Legislation to adopt-and-amend citizen-initiated petitions. This means the minimum wage and sick time laws, as originally adopted, will be reinstated.

Mothering Justice, Michigan One Fair Wage, Michigan Time to Care sponsored proposals known as the Improved Workforce Opportunity Wage Act (the Wage Act) and the Earned Sick Time Act. They collected enough signatures from Michigan voters to send the proposals to the ballot in the fall of 2018.

Instead of allowing these proposals to go to the ballot, Michigan’s Republican-led Legislature preemptively passed the proposals. After the election, in the same Legislative session, they voted to substantially scale back the laws and make changes that were requested by a business lobby that criticized the new requirements.

On July 31, 2024, the Michigan Supreme Court ruled that the actions taken by the Legislature in 2018 and 2019 to “adopt-and-amend” the voter initiatives were unconstitutional.

More information about the changes to Michigan’s minimum wage can be found at Michigan.gov/MinimumWage.