Michigan minimum wage increase takes effect Jan. 1

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LANSING — Michigan’s minimum wage will increase by 10 percent starting January 1st, according to MLive.

The state’s standard minimum wage will rise from $12.48 an hour to $13.73 an hour. The increase is part of a multi-year plan that will eventually tie the minimum wage to inflation.

Tipped employees will also see a pay increase. Their base wage will rise to $5.49 an hour. Employers are still required to make up the difference if tips do not bring workers up to the full minimum wage.

The minimum wage for 16- and 17-year-old workers will increase as well, rising to $11.67 an hour.

State lawmakers approved the changes earlier this year through the Improved Workforce Opportunity Wage Act, a compromise aimed at preventing tipped workers from moving to full minimum wage status.

Under the law, Michigan’s minimum wage is scheduled to reach $15 an hour in 2027, with future increases tied to inflation.