Pennsylvania Minimum Wage 2026: $7.25 per Hour, Tipped $2.83
Pennsylvania's minimum wage is $7.25 per hour in 2026, unchanged since 2009, with a $2.83 tipped cash wage and the $135-a-month tip threshold and 80/20 rule from the 2022 regulations. The pending $15 proposal, local preemption, exemptions, overtime, and full-time earnings.
Pennsylvania's minimum wage is $7.25 per hour in 2026, the same as the federal rate and unchanged since July 2009. Tipped employees can be paid a cash wage of $2.83 per hour if they earn at least $135 a month in tips and spend no more than 20 percent of their time on non-tipped work. Governor Shapiro's 2026-27 budget again proposed $15, and the House passed an increase bill, but nothing has been enacted as of September 2026.
- Pennsylvania's minimum wage is $7.25 per hour, unchanged since 2009, and lower than every neighboring state
- Tipped employees can be paid $2.83 in cash wages only if they earn at least $135 a month in tips
- The 2022 regulations added an 80/20 rule and banned deducting credit card fees from tips
- A $15 minimum wage passed the House in 2026 but has not become law
- Philadelphia and Pittsburgh cannot set a local minimum wage for private employers
Current Pennsylvania Minimum Wage
Pennsylvania's Minimum Wage Act sets the rate at $7.25 per hour, where it has been since July 24, 2009, when the last federal increase took effect. The Department of Labor and Industry confirms the rate on its Minimum Wage Act page, and the US Department of Labor lists Pennsylvania at $7.25 in its state minimum wage table.
Pennsylvania is now surrounded by higher rates: New York ($16.00 to $17.00), New Jersey ($15.92), Delaware ($15.00), Maryland ($15.00), Ohio ($11.00), and West Virginia ($8.75). That gap has driven repeated proposals. Governor Shapiro's 2026-27 budget called for $15 per hour, and the state House passed a bill to raise the rate in 2026, as noted in a governor's office release. The Senate had not acted as of September 2026, so $7.25 remains the law. Employers should watch the Senate calendar, because past House bills have included phased schedules and regional rates.
Pennsylvania Minimum Wage vs Federal Minimum Wage
| Rate | Pennsylvania | Federal (FLSA) |
|---|---|---|
| Minimum wage | $7.25 per hour | $7.25 per hour |
| Tipped cash wage | $2.83 | $2.13 |
| Difference | Same as federal | Baseline |
| Last changed | See schedule below | July 24, 2009 |
When state and federal rates differ, the employer must pay the higher one for any employee covered by both laws. Because Pennsylvania's rate equals the federal minimum, the practical rate is $7.25 for nearly every worker, and the state law matters mainly for the employers and rules it covers that the FLSA does not. The federal rate has been $7.25 since July 24, 2009, and there is no scheduled federal increase. Our minimum wage by state guide compares every state.
Tipped Minimum Wage in Pennsylvania
Pennsylvania's tipped cash wage is $2.83 per hour, with a maximum tip credit of $4.42. The rules were tightened by regulations that took effect August 5, 2022, summarized on the Department of Labor and Industry's overtime and tipped worker rules page:
- An employee qualifies as tipped only if they earn at least $135 in tips per month, up from the old $30 federal threshold
- The 80/20 rule: an employee for whom a tip credit is taken cannot spend more than 20 percent of weekly hours on duties that do not directly generate tips, or the employer owes the full $7.25 for the excess time
- No credit card or other transaction fees may be deducted from tips
- Managers and supervisors may not take from a tip pool, and tip pools that include employees paid below $7.25 may include only customarily tipped workers
- Employers must give written notice of the tip credit
If cash wages plus tips fall short of $7.25 for any hour, the employer pays the difference.
| Item | Pennsylvania (2026) | Federal |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 |
| Minimum cash wage for tipped employees | $2.83 | $2.13 |
| Maximum tip credit | $4.42 | $5.12 |
Pennsylvania Minimum Wage Increase Schedule
| Effective date | Minimum wage |
|---|---|
| 2021 | $7.25 |
| 2022 | $7.25 |
| 2023 | $7.25 |
| 2024 | $7.25 |
| 2025 | $7.25 |
| 2026 | $7.25 |
No increase has been enacted. The Governor's 2026-27 budget proposed $15 per hour, and the House passed an increase bill during 2026. A change requires Senate passage and the Governor's signature. Employers in the Philadelphia and Pittsburgh metros should plan for the possibility of a phased increase, but the current legal rate is $7.25 and the tipped cash wage is $2.83.
Local Minimum Wages in Pennsylvania
Pennsylvania preempts local minimum wages for private employers under the Minimum Wage Act. Philadelphia and Pittsburgh cannot set a higher citywide rate, although Philadelphia requires city contractors and subcontractors to pay a higher minimum (set by ordinance, above $15) and Pittsburgh has similar rules for city employees and contractors. Those rules do not apply to private employers generally.
How Pennsylvania Compares to Neighboring States
Employers that hire across state lines, or compete for workers with employers over the border, should know how Pennsylvania compares. Rates below are the US Department of Labor's figures as of July 1, 2026.
| State | 2026 minimum wage | Tipped cash wage |
|---|---|---|
| New York | $17.00 | Varies by region |
| New Jersey | $15.92 | $6.05 |
| Delaware | $15.00 | $2.23 |
| Maryland | $15.00 | $3.63 |
| West Virginia | $8.75 | $2.62 |
| Ohio | $11.00 | $5.50 |
| Pennsylvania | $7.25 | $2.83 |
Every state listed pays more than Pennsylvania, which is why employers near the state line often pay above the legal minimum to compete for staff. Remote employees are generally owed the minimum wage of the state where they physically work, not where the employer is based, so a Pennsylvania company with staff in a neighboring state must apply that state's rate to those employees.
Who Is Covered and Who Is Exempt
The Pennsylvania Minimum Wage Act covers most employers in the state and largely mirrors the federal FLSA. Exemptions from the state minimum wage include:
- Farm labor and domestic service in private homes
- Bona fide executive, administrative, and professional employees
- Outside salespeople
- Employees of certain seasonal amusement or recreational establishments
- Golf caddies, newspaper deliverers, and switchboard operators of small telephone companies
- Students employed by their own school in some circumstances
Pennsylvania also allows a student and learner rate of 85 percent of the minimum wage in limited circumstances with Department approval. Because the state and federal rates are equal, the federal FLSA tests usually decide coverage; our exempt vs non-exempt guide explains them.
Overtime and the Minimum Wage
Pennsylvania requires time and a half after 40 hours in a workweek, the same as federal law. The 2022 regulations also changed how the regular rate is calculated for salaried non-exempt employees: the fluctuating workweek method is not allowed in Pennsylvania, so salaried non-exempt staff must be paid overtime based on a 40-hour regular rate.
Here is what a 45-hour week costs at the Pennsylvania minimum wage under the 40-hour rule:
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular hours | 40 | $7.25 | $290.00 |
| Overtime hours | 5 | $10.88 (1.5x) | $54.38 |
| Gross pay for the week | 45 | $344.38 |
Overtime must be calculated on the employee's regular rate, which includes shift differentials and non-discretionary bonuses, not just the base wage. See our guide to overtime pay laws in the US and use the overtime calculator to check a specific week.
What a Minimum Wage Worker Earns in Pennsylvania
| Basis | Hourly | Weekly (40 hours) | Monthly (173.33 hours) | Annual (2,080 hours) |
|---|---|---|---|---|
| Full minimum wage | $7.25 | $290.00 | $1,256.64 | $15,080.00 |
| Tipped cash wage only | $2.83 | $113.20 | $490.52 | $5,886.40 |
These are gross figures before taxes and deductions, and they assume a full 40-hour week with no unpaid time off. A tipped employee's total pay must reach at least the full minimum wage row once tips are added. To convert a different hourly rate, use the salary to hourly calculator, and see our explainer on gross pay for what is included before deductions.
Employer Compliance Checklist
- Pay at least $7.25 per hour for every hour worked, including training, meetings, and time spent waiting or on call at the workplace
- If you take a tip credit, give written notice, track tips by pay period, and make up any shortfall to $7.25
- Display the required state and federal minimum wage posters where employees can see them
- Pay overtime at 1.5 times the regular rate after 40 hours in a workweek, and never average hours across weeks
- Keep accurate time records for at least three years; a time card calculator helps verify weekly totals before payroll runs
- Review exempt classifications against the salary and duties tests; a job title alone does not make an employee exempt
- Cross-check breaks, leave, and overtime rules in our Pennsylvania labor law guide
- Check the labor law compliance hub for related state rules on breaks, leave, and final pay
Frequently Asked Questions
What is the minimum wage in Pennsylvania in 2026?
$7.25 per hour, the same as the federal minimum wage. It has not changed since July 2009.
Is Pennsylvania raising the minimum wage to $15?
Not yet. The Governor proposed $15 in the 2026-27 budget and the House passed an increase bill in 2026, but the Senate has not acted, so the rate remains $7.25 as of September 2026.
What is the tipped minimum wage in Pennsylvania?
$2.83 per hour in cash wages, with a tip credit of up to $4.42. The employee must earn at least $135 a month in tips to qualify.
What is Pennsylvania's 80/20 rule?
An employee paid the tipped cash wage cannot spend more than 20 percent of weekly hours on work that does not directly generate tips. Hours beyond that must be paid at the full $7.25.
Can employers deduct credit card fees from tips in Pennsylvania?
No. The 2022 regulations prohibit deducting credit card or other non-cash transaction fees from any worker's tips.
Does Philadelphia have a higher minimum wage?
Not for private employers. Philadelphia sets a higher minimum only for city contractors and subcontractors. State law preempts a general local rate.
Does Pennsylvania allow the fluctuating workweek for overtime?
No. Since the 2022 regulations, salaried non-exempt employees must receive overtime calculated on a 40-hour regular rate.
How much does a full-time minimum wage worker earn in Pennsylvania?
$290 a week and $15,080 a year before taxes at $7.25 per hour, based on 2,080 hours.
Sources
- Pennsylvania L&I, Pennsylvania's Minimum Wage Act
- Pennsylvania L&I, Overtime and Tipped Worker Rules in PA
- Governor's office, House passes minimum wage bill (2026)
- US DOL, State Minimum Wage Laws (July 1, 2026)
- US Department of Labor, Minimum Wages for Tipped Employees
Reviewed September 2026
Rates and rules on this page were checked against the US Department of Labor's state minimum wage tables (effective July 1, 2026) and the Pennsylvania sources listed above. Minimum wage laws change through legislation, ballot measures, indexing, and court decisions. Confirm the current rate with the state labor agency before setting pay, and see our labor law compliance guides for related rules.
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