Minnesota minimum-wage adjusted for inflation
DULUTH, MN. (Northern News Now) - Minnesota’s minimum-wage rates will be adjusted for inflation.
The new rates will go into effect on Jan. 1, 2023.
- Large employers – with annual gross revenues of at least $500,000 – must pay at least $10.59 an hour.
- Small employers – with annual gross revenues less than $500,000 – must pay at least $8.63 an hour.
- The training wage rate, $8.63 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
- The youth wage rate, $8.63 an hour, may be paid to employees younger than 18 years of age.
The new minimum-wage will not apply to work that is performed in Minneapolis or St. Paul because they already have higher rates.
The rates for large employers in Minneapolis and macro employers in St. Paul reached $15 in 2022.
Minimum wages for other employers of different sizes in Minneapolis and St. Paul will reach $15 in various years from 2023 to 2027, and will be adjusted for inflation thereafter.
The Minnesota Department of Labor also released their 2022 Minnesota minimum-wage report.
In 2022, workers earning the Minnesota minimum hourly wage and working 40 hours a week received an annual earning of $21,486 for workers at large employers and $17,514 for workers at small employers.
As of July 1, 2022, Minneapolis workers earn annual full-time wages of $31,200 at large employers and $28,080 at small employers.
St. Paul workers earn $28,080 at large employers and $24,960 at small employers.
In comparison to 1960 through 1981, the 2022 minimum wage of $10.33 was below the average rate of the federal wage.
Adjusting for inflation for these years was $11.71.
When the Minneapolis and St. Paul minimum wages reach $15, they will be higher than the federal minimum wage peak of $13.65, adjusted for inflation, which was reached in 1968.
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