Oregon Minimum Wage 2026: $15.55 Standard, $16.80 Portland, $14.55 Non-Urban
Oregon minimum wage from July 1, 2026 is $15.55 standard, $16.80 inside the Portland urban growth boundary, and $14.55 in non-urban counties. Tips never count toward the minimum. Rates adjust for inflation every July 1.
Oregon runs a three-tier minimum wage. From July 1, 2026 through June 30, 2027 the rates are $15.55 per hour for the standard tier, $16.80 inside the Portland metro urban growth boundary, and $14.55 in 18 non-urban counties. Oregon does not allow a tip credit, so tipped employees receive the full rate for their tier before tips. All three rates adjust for inflation each July 1, so the next change takes effect July 1, 2027 and will be announced by the Bureau of Labor and Industries in the spring.
Reviewed September 2026
Rates on this page were checked against the Oregon Bureau of Labor and Industries and the US Department of Labor state minimum wage tables as of July 1, 2026. BOLI announces the following July's rates each April. See our labor law compliance guides for other Oregon rules.
Current Oregon Minimum Wage
Oregon's tiered system comes from Senate Bill 1532, passed in 2016, which set fixed annual increases through July 2022 and then switched the standard rate to inflation indexing. The Portland metro rate is always $1.25 above the standard rate and the non-urban rate is always $1.00 below it, so all three move together each July 1.
The Oregon Bureau of Labor and Industries (BOLI) lists the current rates and the counties in each tier:
- Portland metro, $16.80: the parts of Clackamas, Multnomah, and Washington counties inside the urban growth boundary.
- Standard, $15.55: Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill counties, plus the portions of Clackamas, Multnomah, and Washington outside the boundary.
- Non-urban, $14.55: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.
The rate that applies is the one for the location where the employee performs the work. An employer in Bend (standard) with a crew that spends a week on a job in Klamath Falls (non-urban) may pay the lower rate for that week, and one that sends staff into downtown Portland owes the metro rate for those hours. BOLI's rule is that an employee who works in a higher-rate region for more than half the week is owed that rate for the whole week.
Oregon Minimum Wage vs Federal Minimum Wage
| Oregon standard | Portland metro | Non-urban | Federal (FLSA) | |
|---|---|---|---|---|
| Hourly minimum, July 2026 to June 2027 | $15.55 | $16.80 | $14.55 | $7.25 |
| Tip credit | None | None | None | Up to $5.12 |
| Annual adjustment | CPI, July 1 | Standard plus $1.25 | Standard minus $1.00 | None |
| Youth or training wage | None | None | None | $4.25 youth wage |
Oregon's lowest rate is double the federal minimum, so the federal figure has no practical effect in the state.
Tipped Minimum Wage in Oregon
Oregon is one of seven states, with Alaska, California, Minnesota, Montana, Nevada, and Washington, that prohibit any tip credit. BOLI states that "tips are separate and cannot be counted as wages" and that "tip credits are illegal in Oregon." A server in Portland must be paid at least $16.80 in wages before a single dollar of tips.
Tips belong to the employee. Employers may operate a tip pool that includes back-of-house staff such as cooks and dishwashers, which federal rules allow only when no tip credit is taken, but owners, managers, and supervisors cannot receive a share. Mandatory service charges are not tips unless the employer chooses to pass them on.
Oregon Minimum Wage Increase Schedule
Oregon's rates change each July 1 rather than January 1. The schedule since 2021:
| Effective July 1 | Standard | Portland metro | Non-urban |
|---|---|---|---|
| 2021 | $12.75 | $14.00 | $12.00 |
| 2022 | $13.50 | $14.75 | $12.50 |
| 2023 | $14.20 | $15.45 | $13.20 |
| 2024 | $14.70 | $15.95 | $13.70 |
| 2025 | $15.05 | $16.30 | $14.05 |
| 2026 | $15.55 | $16.80 | $14.55 |
| 2027 | CPI adjustment, announced April 2027 | Standard plus $1.25 | Standard minus $1.00 |
The standard rate adjustment is based on the change in the US City Average Consumer Price Index for All Urban Consumers over the prior year, rounded to the nearest five cents. The rate cannot decrease.
Local Minimum Wages in Oregon
Oregon's three regional tiers are set by state law, and cities and counties may not adopt their own minimum wage ordinances. Portland's higher rate is therefore a state tier, not a city ordinance, and it applies to the whole urban growth boundary rather than to the city limits. Beaverton, Hillsboro, and Gresham are inside the boundary and use $16.80; Salem, Eugene, and Bend use the standard $15.55.
Who Is Covered and Who Is Exempt
Oregon's minimum wage law covers nearly all employees, including minors, who receive the full rate for their region. Exemptions are narrow:
- Bona fide executive, administrative, and professional employees who meet the duties tests and are paid on a salary basis at Oregon's threshold, which for most exemptions is the state minimum wage multiplied by 2,080 hours
- Certain agricultural workers on small farms, with separate rules under Oregon's agricultural overtime law
- Some in-home domestic workers, casual babysitters, and live-in companions
- Volunteers for nonprofit organizations and some student workers
Oregon's salary threshold for exempt employees is tied to the minimum wage rather than to the federal $684 per week, which means it rises every July. See exempt vs non-exempt employees for the federal tests and the Oregon labor law guide for the state rules.
Overtime and the Minimum Wage
Oregon requires overtime at 1.5 times the regular rate after 40 hours in a workweek for most employees. Manufacturing employees also have daily overtime after 10 hours in a day, and agricultural workers are phasing toward a 40-hour overtime threshold under a 2022 law.
For a minimum wage employee working 45 hours in the standard tier:
- 40 hours at $15.55 = $622.00
- 5 overtime hours at $23.33 = $116.63
- Weekly gross pay = $738.63
In the Portland metro tier the same week is $672.00 plus $126.00, or $798.00. Use the overtime calculator for other rates, and see overtime pay laws by state.
What a Minimum Wage Worker Earns in Oregon
| Schedule | Non-urban $14.55 | Standard $15.55 | Portland metro $16.80 |
|---|---|---|---|
| 40-hour week | $582.00 | $622.00 | $672.00 |
| Month (173.33 hours) | $2,521.95 | $2,695.28 | $2,911.94 |
| Year (2,080 hours) | $30,264 | $32,344 | $34,944 |
Gross figures before taxes. Convert any rate with the salary to hourly calculator, and see what gross pay includes.
Common Minimum Wage Mistakes in Oregon
Oregon's regional tiers and July effective date differ from most states, and both cause errors:
- Updating rates in January. Oregon's rates change on July 1. An employer that raises rates each January is six months late every year.
- Using the employer's address instead of the work location. The tier follows where the employee works. A Salem company with a crew in Portland owes $16.80 for those hours, and an employee who spends more than half a week in a higher tier gets that rate for the whole week.
- Guessing the urban growth boundary. Parts of Clackamas, Multnomah, and Washington counties are outside the boundary and pay the standard rate. Metro's boundary map, not the county line, decides.
- Counting tips toward the minimum. Any tip credit is illegal in Oregon. Wages must reach the full regional rate on their own.
- Applying the federal salary threshold to exempt staff. Oregon's exempt threshold is tied to the state minimum wage and is well above $684 a week.
Employer Compliance Checklist
- Identify which tier each work location falls into, including whether an address inside Clackamas, Multnomah, or Washington County is inside the urban growth boundary.
- Update all three rates every July 1, not January 1. Mark the BOLI announcement in April on the payroll calendar.
- Never apply a tip credit. Pay the full regional rate before tips and keep tips out of the wage calculation.
- Track work location by week for employees who move between tiers, because working more than half a week in a higher-rate region entitles the employee to that rate for the week.
- Check salaried employees against Oregon's minimum-wage-based exempt threshold each July.
- Record hours with a time card calculator or time tracking software; Oregon requires records of hours worked and pay for at least two years, and three under federal law.
- Post the current BOLI minimum wage poster, which shows all three rates and the county map.
Location-Based Hours for Oregon's Three Tiers
HiveDesk records where and when each employee works, so Portland metro hours and non-urban hours are tracked separately and overtime is calculated on the right rate. $5/user/month, 14-day free trial.
Frequently Asked Questions
What is the minimum wage in Oregon in 2026?
$15.55 per hour in the standard tier, $16.80 in the Portland metro area, and $14.55 in non-urban counties, effective July 1, 2026 through June 30, 2027.
What is the minimum wage in Portland, Oregon?
$16.80 per hour, which applies throughout the Portland urban growth boundary, including Beaverton, Hillsboro, and Gresham.
When does Oregon minimum wage go up?
Every July 1. The next adjustment takes effect July 1, 2027, and BOLI announces the new rates in April 2027.
Does Oregon allow a tip credit?
No. Tipped employees receive the full minimum wage for their region in cash wages, and tips are on top.
Which counties pay the non-urban rate?
Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.
Is there a lower minimum wage for minors in Oregon?
No. Employees under 18 receive the full rate for their tier.
How much is Oregon minimum wage per year?
$32,344 at the standard rate, $34,944 in the Portland metro tier, and $30,264 in non-urban counties, for 2,080 hours before taxes.
Can Eugene or Salem set a higher minimum wage?
No. Oregon preempts local minimum wage ordinances; only the three state tiers apply.
For a comparison with every other state, see minimum wage by state.