Hawaii Minimum Wage 2026: $16.00 Now, $18.00 on January 1, 2028
Hawaii minimum wage is $16.00 per hour as of January 1, 2026 and rises to $18.00 on January 1, 2028 under Act 114. Tip credit of $1.25 only when wages plus tips exceed the minimum by $7.00.
The Hawaii minimum wage is $16.00 per hour as of January 1, 2026. It is the third step of a four-step schedule set by Act 114 of 2022, and the final step raises the rate to $18.00 per hour on January 1, 2028. Hawaii allows a small tip credit of $1.25, but only when the employee's wages plus tips come to at least $7.00 more than the minimum wage, which means the tipped cash wage is $14.75 and the employee must actually earn $23.00 or more per hour for the credit to apply.
- Hawaii pays $16.00 per hour in 2026 and 2027, then $18.00 from January 1, 2028
- The schedule comes from Act 114 (2022): $12.00 in October 2022, $14.00 in 2024, $16.00 in 2026, $18.00 in 2028
- The $1.25 tip credit applies only when wages plus tips reach at least $23.00 per hour
- No city or county in Hawaii sets its own minimum wage
- Hawaii's rate is more than double the federal $7.25
Current Hawaii Minimum Wage
The Hawaii Department of Labor and Industrial Relations administers the state's Wage and Hour Law (Hawaii Revised Statutes chapter 387). Act 114, signed in June 2022, wrote a fixed schedule into the statute rather than tying the rate to inflation. The department's published schedule shows $14.00 per hour beginning January 1, 2024, $16.00 per hour beginning January 1, 2026, and $18.00 per hour beginning January 1, 2028.
That means the rate is $16.00 for all of 2026 and 2027. Employers do not need to watch for an annual inflation announcement the way they do in Washington or Oregon; the next change is fixed in law and two years away.
Hawaii has no separate small employer rate and no youth or training wage in the statute. The one significant exemption is for employees who are guaranteed compensation of a set monthly amount; the US Department of Labor lists that threshold at $4,000 per month as of July 2026, though employers should confirm the current figure with the department because Act 114 raised it.
Hawaii Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Effective |
|---|---|---|
| Hawaii minimum wage | $16.00 per hour | January 1, 2026 |
| Hawaii minimum wage (scheduled) | $18.00 per hour | January 1, 2028 |
| Federal minimum wage | $7.25 per hour | July 24, 2009 |
| Difference in 2026 | $8.75 per hour |
Hawaii's rate is among the highest in the country, behind only Washington, DC and Washington state as of mid-2026. Employers must pay the higher of the state and federal rates, so the Hawaii figure governs. Our minimum wage by state table shows every state's rate side by side.
Tipped Minimum Wage in Hawaii
Hawaii's tip credit is unusual. Under HRS section 387-2, an employer may pay a tipped employee up to $1.25 below the minimum wage, but only if the employee's wages plus tips equal at least $7.00 more than the minimum wage. In 2026 that works out as follows:
| Item | 2026 figure |
|---|---|
| Minimum wage | $16.00 |
| Maximum tip credit | $1.25 |
| Tipped cash wage | $14.75 |
| Wages plus tips required for the credit | $23.00 per hour |
If a server's tips are modest and wages plus tips fall below $23.00 in a pay period, the employer cannot take the credit for that period and must pay the full $16.00. The department publishes a Tip Credit Notice that employers must provide to tipped staff. In 2028 the cash wage becomes $16.75 and the combined threshold becomes $25.00.
Employers accustomed to the federal $2.13 cash wage should budget for hospitality payroll that starts near the full minimum wage.
Hawaii Minimum Wage Increase Schedule
| Effective date | Rate | Source |
|---|---|---|
| January 1, 2018 | $10.10 | Act 82 (2014) final step |
| October 1, 2022 | $12.00 | Act 114 (2022) |
| January 1, 2024 | $14.00 | Act 114 (2022) |
| January 1, 2026 | $16.00 | Act 114 (2022) |
| January 1, 2028 | $18.00 | Act 114 (2022) |
The rate stayed at $10.10 from 2018 through September 2022, which is why the recent increases have been large. After 2028 there is no scheduled increase and no inflation indexing; a future legislature would need to act.
Local Minimum Wages in Hawaii
No county in Hawaii sets its own minimum wage. Honolulu, Maui, Kauai and Hawaii County all follow the statewide rate, so the $16.00 figure applies uniformly across the islands.
Who Is Covered and Who Is Exempt
Chapter 387 covers most employees in the state. Exemptions include employees guaranteed a monthly salary above the statutory threshold, some agricultural workers on small farms, certain family members employed by a family business, and people employed in a bona fide executive, administrative, supervisory or professional capacity. The duties tests mirror the federal framework, so being paid a salary is not enough on its own; see our guide to exempt vs non-exempt employees.
Hawaii also requires most employers to provide health coverage under the Prepaid Health Care Act to employees working 20 or more hours a week, which is a cost employers should model alongside the minimum wage.
Overtime and the Minimum Wage
Hawaii requires time and a half after 40 hours in a workweek, matching the federal Fair Labor Standards Act. There is no daily overtime rule. A minimum wage worker who works 45 hours earns 40 hours at $16.00 ($640.00) plus 5 hours at $24.00 ($120.00), for $760.00 gross.
Use our overtime calculator for any rate and schedule, and see our guide to overtime pay laws by state for the rules across the country.
What a Minimum Wage Worker Earns in Hawaii
| Period | Hours | Gross pay at $16.00 | Gross pay at $18.00 (2028) |
|---|---|---|---|
| Weekly | 40 | $640.00 | $720.00 |
| Biweekly | 80 | $1,280.00 | $1,440.00 |
| Monthly (average) | 173.33 | $2,773.28 | $3,119.94 |
| Annual | 2,080 | $33,280.00 | $37,440.00 |
These are gross wages before taxes and deductions. Our explainer on gross pay covers the difference between gross and net, and the salary to hourly calculator converts any rate.
Employer Compliance Checklist
- Pay at least $16.00 per hour through December 31, 2027 and $18.00 from January 1, 2028
- Take the $1.25 tip credit only for pay periods in which wages plus tips reach $23.00 per hour, and provide the required tip credit notice
- Verify the guaranteed monthly compensation exemption threshold with the department before treating a salaried employee as exempt from the minimum wage
- Apply weekly overtime after 40 hours
- Post the current Hawaii wage and hour notice
- Keep accurate hours records for tipped and hourly staff; a time card calculator or automatic time tracking makes the tip credit test easy to document
Reviewed September 2026
Figures on this page come from the Hawaii Department of Labor and Industrial Relations minimum wage schedule and the US Department of Labor state and tipped minimum wage tables as of July 1, 2026. Confirm the guaranteed compensation exemption threshold and tip credit rules with the department before applying them.
Document the tip credit test every pay period
HiveDesk tracks hours automatically so you can show wages plus tips against Hawaii's $23.00 threshold for every tipped employee. $5/user/month, 14-day free trial.
How Hawaii Compares With Neighboring States
Hawaii has no land neighbors, but employers often compare it with the West Coast states that share a high cost of living.
| State | Minimum wage (July 1, 2026) | Notes |
|---|---|---|
| Hawaii | $16.00 | $18.00 on January 1, 2028; $1.25 tip credit with $7 rule |
| California | $16.90 | Indexed each January; no tip credit |
| Washington | $17.13 | Indexed each January; no tip credit |
| Oregon | $15.55 | Standard rate; no tip credit |
| Alaska | $14.00 | $15.00 on July 1, 2027; no tip credit |
Hawaii is the only state in this group that permits any tip credit, and its $7.00 condition makes the credit narrower than the federal version.
Common Minimum Wage Mistakes in Hawaii
- Taking the $1.25 tip credit in a pay period where wages plus tips fell short of $23.00
- Treating a salaried employee as exempt from the minimum wage without checking the guaranteed monthly compensation threshold
- Budgeting for an inflation adjustment that does not exist; the next change is fixed at $18.00 in 2028
- Forgetting the Prepaid Health Care Act obligation for employees working 20 or more hours a week
- Assuming a county rate applies; every island uses the statewide figure
Frequently Asked Questions
What is the minimum wage in Hawaii in 2026?
$16.00 per hour, effective January 1, 2026, under Act 114 of 2022.
When does the Hawaii minimum wage go to $18?
January 1, 2028. The rate stays at $16.00 for 2026 and 2027.
Does Hawaii allow a tip credit?
Yes, but only $1.25 and only when the employee's wages plus tips equal at least $7.00 more than the minimum wage, which is $23.00 per hour in 2026.
What is the tipped minimum wage in Hawaii?
$14.75 per hour in cash wages when the tip credit applies. If wages plus tips do not reach $23.00, the employer must pay the full $16.00.
Is there a different minimum wage in Honolulu or Maui?
No. Hawaii has no county or city minimum wages; the statewide rate applies everywhere.
Does Hawaii have a training or youth wage?
No. Chapter 387 does not provide a lower rate for young or new workers.
Is the Hawaii minimum wage indexed to inflation?
No. Act 114 set fixed dates and amounts through 2028. Any increase after that requires new legislation.
How does Hawaii's minimum wage compare with the federal rate?
It is $8.75 above the federal $7.25 in 2026, and the gap grows to $10.75 in 2028.