Pennsylvania’s minimum wage has remained unchanged since 2009. That year, the federal minimum wage increased to $7.25 per hour, and Pennsylvania’s rate rose to meet it. Neither the federal nor Pennsylvania’s state rate has changed in the 17 years since, despite significant increases in the cost of living.
What you’ll learn
What you’ll learn
Key takeaways for Pennsylvania employers
- Since 2009, the PA state and federal minimum wage rates have not increased
- Tipped workers in Pennsylvania have a separate minimum wage of $2.83 per hour, slightly higher than the federal tipped minimum
- Employers must pay eligible employees 1.5 times their regular wage for every hour worked over 40 hours per workweek
- A new bill passed by the PA House aims to raise the state minimum wage in phases, eventually reaching $15 per hour by 2029 (if approved by the Senate)
Pennsylvania’s rate has been the subject of growing scrutiny, with proposals to increase it in the state legislature. For employers, it makes good business sense to be aware of these potential changes and how they can affect your payroll expenses. Explore the current minimum wage in PA, tipped pay, and overtime rules, as well as tips on how to keep your business compliant amid any possible changes.
What is the current minimum wage in Pennsylvania?
At the moment, minimum wage in Pennsylvania is $7.25 per hour. Though that’s the same rate as the federal minimum wage per the Fair Labor Standards Act (FLSA), Pennsylvania’s wage law is separate. Employers must follow state, federal, and local employment laws when applicable.
For tipped workers, there is a separate, lower minimum wage rate. Employers can pay tipped workers a base cash rate of $2.83 per hour. However, each employee’s earnings must reach a total of $7.25 per hour from combined tips and cash wages.
All the states bordering Pennsylvania have higher minimum wage rates:
- New York: $17 per hour
- New Jersey: $15.92 per hour
- Maryland and Delaware: $15
- Ohio: $11 per hour
- West Virginia: $8.75 per hour
When speaking about the need to raise the Pennsylvania minimum wage, Governor Shapiro even referenced the higher rates in Ohio and West Virginia. The proposal to increase the minimum wage to $15 per hour would put Pennsylvania more in line with its neighboring states than the current rate of $7.25 per hour.
2026 legislative alert: Proposed minimum wage Increase
Though Pennsylvania’s minimum wage remains at $7.25 per hour for now, some changes could be on the horizon. A new bill (HB 2189) has passed the Pennsylvania state House and is currently before the state Senate. If passed and signed into law, the bill would enact a phased increase to the state minimum wage:
- $11.00 per hour beginning January 1, 2027
- $13.00 per hour beginning January 1, 2028
- $15.00 per hour beginning January 1, 2029
Following this schedule, the minimum wage would then be subject to automatic annual cost-of-living adjustments starting in 2030. While it’s not yet law, employers should monitor its progress through the Senate so they can begin budgeting for potential payroll increases.
How tipped wages work under Pennsylvania law
While the general minimum wage in Pennsylvania matches the federal minimum, the tipped wage does not. So, how much is the minimum wage in Pennsylvania for tipped workers?
Under the FLSA, tipped workers must receive $2.13 per hour as a cash base wage from employers. That rate is slightly higher in Pennsylvania at $2.83 per hour. In both cases, tipped workers still must earn at least $7.25 per hour of combined tips and cash wages. Review an employer’s guide to tipped wages to stay compliant with these rules.
If an employee does not earn enough in tips to make $7.25 per hour, it is the employer’s responsibility to pay the difference. So, PA employers could owe their tipped workers up to $4.42 per hour if they don’t make enough in tips to reach the state minimum. You cannot claim more than $4.42 per hour per employee as tip credits toward the minimum wage requirements.
Because the general minimum wage and the tipped worker minimum differ in Pennsylvania, business leaders need to know exactly who qualifies as a tipped worker. For the purposes of applying minimum wage requirements, PA state law specifies that only employees earning at least $135 per month count as tipped workers.
Also note that once you count employees as tipped workers and apply tip credits, those employees cannot spend more than 20% of their work time on tasks that don’t directly generate tips.
Overtime rules and employee classification
Generally, hourly workers are eligible for overtime payments once they work more than 40 hours in a workweek. Employers must pay them 1.5 times their usual rate for every hour they work over the 40-hour threshold.
For example, an employee earning $10 per hour who worked 45 hours would receive at least $15 per hour in overtime pay for the last five hours.
Under Pennsylvania law, some employees are not entitled to overtime. These exempt employees include some in executive, administrative, and professional positions. Likewise, supervisors whose sole job is supervision are exempt from overtime. Carefully read through the exemptions to determine whether you need to pay overtime to certain employees.
Why has Pennsylvania not raised its minimum wage?
Pennsylvania’s $7.25 per hour minimum wage hasn’t changed since 2009. Although there have been proposals to increase the rate since then, legislative gridlock and other factors have kept rates from moving forward.
As of 2026, with all surrounding states implementing higher minimum wages and growing pressure from workers, Pennsylvania may raise the minimum wage.
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What the proposed 2026 increases could mean for employers
If this bill or a similar one passes in Pennsylvania, employers across the state would see phased minimum wage increases toward $15 per hour over the next several years. The new $15 per hour rate would put Pennsylvania on par with Arizona, Colorado, Delaware, and Illinois, with basic hourly minimum wage rates at or near $15. Compare rates with the minimum wage by state summary.
Employers should take note. An increase in the minimum wage could significantly increase your payroll expenses, especially if you currently have many employees earning $7.25 per hour. Begin thinking about how you might budget for these higher payroll expenses.
Preparing your payroll for future wage changes
With the state Senate currently considering an increase to the minimum wage, employers should monitor the bill’s progress and prepare for potential changes to their labor costs. To plan ahead, you can use a Pennsylvania hourly paycheck calculator to estimate net pay and withholdings under the proposed rates.
Implementing an automated payroll system like OnPay is a practical way to keep up with these shifting regulations. Tools automatically handle payroll calculations and tax withholding to ensure compliance during wage transitions. You can focus on operating your business while OnPay manages your payroll. Get started today.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.