Pennsylvania Minimum Wage 2026
The minimum wage in Pennsylvania is $7.25 per hour in 2026, effective July 24, 2009. Tipped employees can be paid a cash wage of $2.83 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in Pennsylvania in 2026?
The Pennsylvania minimum wage is $7.25 per hour in 2026, unchanged since July 24, 2009. What makes Pennsylvania unusual is the company it keeps: every single neighboring state pays more. New York is at $16.00, New Jersey at $15.92, Delaware and Maryland at $15.00, Ohio at $10.95, and even West Virginia sits at $8.75.
That gap defines hiring along Pennsylvania's borders. A Philadelphia employer competes with New Jersey wages a bridge away, and a Pittsburgh employer with Ohio rates an hour west. Governors have proposed a $15.00 minimum repeatedly, and bills have passed the state House more than once, only to stall in the Senate, leaving the 2009 federal rate in place.
Tipped minimum wage in Pennsylvania
Pennsylvania sets its own tipped minimum wage of $2.83 per hour, higher than the federal $2.13. Tips must still bring every tipped employee to at least $7.25 per hour for the workweek, with the employer topping up any shortfall.
Regulations updated in 2022 tightened the rules considerably: an employee must earn at least $135 per month in tips before the tip credit can be used at all, and the 80/20 rule limits how much non-tipped side work a tipped employee can perform at the $2.83 rate. Restaurants should audit job duties, not just tip totals.
Pennsylvania minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $7.25 | $2.83 |
| 2021 | $7.25 | $2.83 |
| 2022 | $7.25 | $2.83 |
| 2023 | $7.25 | $2.83 |
| 2024 | $7.25 | $2.83 |
| 2025 | $7.25 | $2.83 |
| 2026 | $7.25 | $2.83 |
Upcoming minimum wage increases in Pennsylvania
No increase is currently scheduled. Pennsylvania's rate rises only if the General Assembly passes a state increase or Congress lifts the federal $7.25 minimum.
Pennsylvania is the federal-rate state most likely to move. Successive governors have proposed $15.00 in nearly every budget address, and minimum wage bills have cleared the House before dying in the Senate. With every border state already higher, employers should build contingency plans for a phased state increase even though none has passed yet.
Minimum wage by city in Pennsylvania
Pennsylvania preempts local minimum wage ordinances, so Philadelphia cannot set its own rate for private employers despite years of city council interest. The $7.25 floor applies statewide, from Philadelphia to Erie.
The result is a striking split between law and market. Philadelphia hourly postings routinely start near or above what New Jersey mandates across the Delaware River, while smaller markets like Erie and Allentown see more jobs clustered closer to the legal floor.
Federal rate; state preemption blocks a city minimum despite New Jersey's $15.92 next door
Federal rate; healthcare and tech employers anchor market pay above the floor
Federal rate; Lehigh Valley warehousing competes with New Jersey wages
Federal rate; among the Pennsylvania metros where the floor binds most often
What Pennsylvania employers need to know
Tipped employee thresholds
Since 2022, the tip credit is only available for employees earning at least $135 per month in tips. Pay at least $2.83 per hour in cash wages and verify tips close the gap to $7.25 weekly.
80/20 side work rule
Tipped employees who spend more than 20 percent of the workweek on non-tip-producing duties must be paid the full $7.25 for that excess time. Track duties, not just hours.
Overtime
Pennsylvania requires 1.5x pay after 40 hours and, unlike the FLSA, does not allow the fluctuating workweek method for calculating overtime for salaried non-exempt staff.
Posting and records
Post the Pennsylvania Minimum Wage Act summary and keep records of hours, wages, and tip credits. Credit card tip deductions for processing fees are not permitted under the 2022 rules.
How other states compare
See how Pennsylvania's $7.25 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Pennsylvania labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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