Michigan Minimum Wage Calculator
Michigan’s minimum wage rises from $13.73 to $15.00 an hour on January 1, 2027, and the eligible tipped cash floor from $5.49 to $6.30, as the schedule in LEO’s wage FAQ lists them (checked October 15, 2026). The 2026 rate of $13.73 replaced $12.48, set February 21, 2025. Choose the work date to apply both the minimum and the correct cash-wage schedule.
Time card Calculate pay for a covered hourly job
Weekly gross including tips—
Confirm coverage to calculate.
- Hourly floor—
- Per workday—
- Weekly gross—
- Monthly average—
- Yearly gross—
- Employer cash before shortfall
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- Weekly tips retained
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- Employer shortfall payment
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- Total employer cash
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Overtime uses the full regular rate before subtracting a permitted tip credit. The employer must cover a weekly tip shortfall within the selected scope. This floor scenario does not calculate pay at a higher agreed rate. Per-workday pay divides the week by the days with hours. Annual figures repeat the rounded weekly result.
Reviewed rate period: 2026-01-01 through 2027-12-31. Gross earnings before taxes or deductions. Annual figures repeat this weekly scenario; they do not combine different rate periods.
Reviewed October 2, 2026 against Michigan LEO’s wage FAQ and required wage poster.
The cash percentage changes as well as the full wage
| Work period | Ordinary hourly minimum | Published service cash | Maximum modeled credit | 40-hour full cash |
|---|---|---|---|---|
| 2026 | $13.73 | $5.49 | $8.24 | $549.20 |
| 2027 | $15.00 | $6.30 | $8.70 | $600.00 |
The current schedule uses a 40% service cash percentage in 2026 and 42% in 2027. The calculator follows LEO’s published cent amounts. It does not reuse an older percentage throughout the projection. WHD 9904 rate schedule.
Michigan minimum wage by year
| Effective | Hourly minimum | Tipped cash minimum | Set by |
|---|---|---|---|
| February 21, 2025 | $12.48 | $4.74 | MCL 408.934(1)(a) |
| January 1, 2026 | $13.73 | $5.49 | MCL 408.934(1)(b) |
| January 1, 2027 | $15.00 | $6.30 | MCL 408.934(1)(c) |
| January 1, 2028 onward | Not yet published | Not yet published | MCL 408.934(2)–(3) |
The 2025 amendment wrote the first three steps into the statute; the tipped cash amounts are the ones on LEO’s wage FAQ. From 2028 the State Treasurer raises the rate each year by the 12-month change in the Midwest CPI-U, publishing the new figure by November 1 of the year before. No increase takes effect for a year after one in which Michigan’s unemployment rate was 8.5% or higher. Until the 2028 figure is published, this calculator stops at December 31, 2027 rather than estimating it. LEO effective-date table, checked October 7, 2026.
A low-tip week requires another employer payment
For 40 covered tipped hours in 2026, cash before adjustment is $219.60. If the employee retains $200 in tips, the employer adds $129.60; total cash is $349.20 and combined gross is $549.20. With $400 tips instead, no adjustment is required and combined gross is $619.60.
In 2027, the same 40 hours and $200 tips starts with $252 cash and requires another $148 to reach $600. The increased full wage changes the shortfall even though the service cash rate also rises. Tip notice, actual receipt and reporting remain required. LEO tipped-employee conditions.
Overtime at $13.73 keeps half cents until the weekly total
Forty-five hours at the full 2026 floor equals $652.175 before rounding, displayed as $652.18. An eligible $8.24 credit for all 45 hours leaves $281.375 employer cash before a shortfall, displayed as $281.38. With $400 retained tips, combined gross is $681.38. The credit does not grow on overtime hours. Federal tipped-overtime treatment.
The model uses the full floor as the regular rate and rounds weekly money outputs to cents. Bonuses, commissions, multiple pay rates or a higher agreed wage can change the regular rate and need a different payroll calculation.
Employer coverage, youth pay and training are separate checks
IWOWA generally covers an employer with at least two employees age 16 or older. This calculator requires an ordinary covered employee age 20 or older. Michigan separately allows an 85% youth rate and a limited first-90-calendar-day training rate for eligible younger workers; neither discount is automatically applied here. Coverage and training provisions.
The state’s 2026 announcement identifies $11.67 for eligible 16- and 17-year-olds and leaves the training rate at $4.25. Those are distinct from the adult $13.73 scenario. A worker’s job and any federal protections still require review before using a reduced rate. LEO 2026 rate announcement.
Compare annual gross without hiding the date boundary
A constant 40-hour, 52-week schedule gives $28,558.40 at the 2026 floor and $31,200 at the published 2027 floor: a $2,641.60 difference before taxes or tips. For a week crossing January 1, split and reconcile payroll using the actual dated hours; the form requires one rate throughout the modeled week.
A 2026 seasonal schedule of 30 hours for 26 weeks produces $10,709.40 before tips. Enter actual planned weeks instead of using the full-year result as guaranteed income. The calculator rejects dates after 2027 rather than inventing later inflation adjustments.
Border workplaces: Indiana minimum wage, Ohio minimum wage and Wisconsin minimum wage. Methodology · Sources.
Updated First published