LANSING, MI (WKZO AM/FM) – Hundreds of thousands of Michigan workers are preparing for a significant boost in their paychecks as the state’s minimum wage is set to rise January 1, 2026.
The increase, part of a legislatively approved schedule following a high-profile 2024 court battle, marks a transition from a $12.48 hourly rate to $13.73.
The 10% hike is the first major adjustment under the Improved Workforce Opportunity Wage Act (Senate Bill 8), which Governor Gretchen Whitmer signed in February 2025. The law established a path toward a $15.00 base wage while compromising on the controversial “tip credit” system.
The road to the increase was defined by a 2024 Michigan Supreme Court ruling that initially paved the way for the complete elimination of the tipped minimum wage. Fearing widespread restaurant closures, the state legislature passed Senate Bill 8 to preserve a modified tip credit while accelerating the increase of the standard base wage.
Under the current plan, the standard wage will jump again to $15.00 January 1, 2027. Starting in 2028, annual increases will be tied to the inflation rate.
The minimum wage hike is not the only state-mandated increase taking effect on New Year’s Day. Maximum weekly unemployment benefits will also rise to $530 per week for new claims filed after January 1, an $84 weekly increase intended to keep pace with the state’s rising cost of living.
Employers are required to update their mandatory labor law posters to reflect the 2026 rates.
Information regarding compliance can be found through the Michigan Department of Labor and Economic Opportunity.
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