As of 2026, the Virginia minimum wage is $12.77 per hour — about the middle of the pack compared to other states. The federal minimum wage of $7.25 per hour applies, but Virginia state law requires employers to pay the higher rate of the state and federal minimum wages.
What you’ll learn
What you’ll learn
Key takeaways
- In 2026, Virginia’s current minimum wage is $12.77 per hour
- New legislation passed by the Virginia Senate, SB1, and House of Delegates, HB1, increases the minimum wage in 2027 to $13.75 per hour and $15 per hour in 2028
- Tipped workers have a separate minimum wage of $2.13 per hour in direct cash wages, matching the federal minimum
- If a tipped employee does not earn enough in tips to reach $12.77 per hour in total earnings, their employer must pay the difference
To stay compliant, employers in Virginia must understand the ins and outs of the state’s wage rules. In this guide, we’ll break down Virginia’s rules for basic minimum wage, tipped wage, and upcoming increases based on Consumer Price Index (CPI) adjustments.
Virginia minimum wage in 2026: What employers must pay
In 2026, the minimum wage in Virginia is $12.77 per hour. This rate applies statewide to covered employees. There are no exemptions based on how many employees an employer has or how much the employer earns in annual revenue. Workers who can be exempt from the Virginia minimum wage requirements include:
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Keep in mind that even if a worker is exempt under Virginia law, the federal minimum wage requirements may still apply. Carefully read through the federal and state rules to determine which, if any, minimum wage rates you must pay your employees.
Tipped worker minimum wage in Virginia
Like many other states, Virginia sets a separate minimum wage for tipped employees at $2.13 per hour. This is the amount employers are required to pay tipped workers as a base cash rate. Each employee’s total hourly earnings must still meet Virginia’s basic minimum wage of $12.77 per hour.
Employers are responsible for making up the difference if the tipped workers don’t earn enough to hit this minimum. You may classify an employee as a tipped worker as long as they earn more than $30 in tips per month.
How Virginia compares to $15-per-hour states
With the new legislation raising the Virginia minimum wage to $15 per hour, the state will be among those with the highest rates. Compare figures across the country with this minimum wage by state guide.
Currently, only 15 states have set minimum wage rates at or above $15 per hour. They include:
- Maryland, Massachusetts, Rhode Island, and Delaware: $15 per hour
- New Jersey: $15.92 per hour
- New York: $16 per hour
- Connecticut: $16.94 per hour
- California: $16.90 per hour
- Washington: $17.13 per hour
Many of these states have higher costs of living than Virginia, which may explain why their minimum wage rates are already at $15 per hour. Virginia Governor Abigail Spanberger has stressed that the legislation to raise the state minimum wage to $15 would help give Virginia workers a pay raise to keep up with rising costs.
Is $12.77 considered a good hourly wage in Virginia?
A full-time worker earning the current Virginia minimum wage of $12.77 per hour would annually earn $26,561. Whether that’s a good wage depends on a worker’s job responsibilities, expenses, and marketable skills.
Compare this wage to the cost of living in Virginia. Estimates place the average cost of living at over $55,000 per year, including housing, food, healthcare, and other expenses. Virginia workers facing high cost-of-living expenses would likely not consider $12.77 per hour a strong hourly wage. Those with significantly lower expenses and less power in the labor market might find $12.77 per hour more appealing.
Beyond their legal obligations, employers need to consider how the wages they pay affect their businesses. Paying wages above the state minimum increases payroll expenses, but it may also help attract and retain top employees. You may not need to deal with as much turnover, leading to lower hiring costs and higher productivity.
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Scheduled increases and inflation adjustments through 2028
The Virginia Minimum Wage Act gradually increases the wage rate to better fit changing economic conditions. In 2026, the minimum wage rose to $12.77 per hour, and it will increase again each year going forward.
Virginia usually uses the Consumer Price Index (CPI) to calculate their annual adjustment to the minimum wage rate. In 2025, the state rate was $12.41 per hour. Because the percentage increase in the CPI was 2.9%, the new 2026 minimum wage rate was 2.9% higher than $12.41. The same calculation could set the 2027 minimum wage in Virginia.
Looking ahead: 2027 and 2028 wage increases
Governor Spanberger recently signed legislation to raise the minimum wage, meaning future increases will no longer be directly tied to the CPI. Instead, the Virginia minimum wage will officially increase to:
- $13.75 per hour in 2027
- $15.00 per hour in 2028
With these scheduled increases now signed into law, you can begin planning ahead for these upcoming adjustments to your payroll expenses.
Stay compliant with Virginia payroll requirements
Staying compliant with state employment laws makes good business sense. It can also help you avoid fines or damage to your business reputation. If you operate in Virginia, keep these rules in mind:
- Tip credits: Employers are able to claim up to $10.64 per hour in tip credits for each employee.
- Exemptions: Some workers, like caddies, traveling salesmen, and those under 16 years old, are exempt from Virginia’s minimum wage.
- Rate increases: Employers must begin paying the annual increased minimum wage rate on January 1. Budget your payroll expenses accordingly
- Overtime: Pay eligible employees 1.5 times their usual wage for any hours worked over 40 hours per workweek, as per state overtime laws
Master Virginia’s moving minimum wage
Staying familiar with Virginia’s minimum wage laws makes good business sense. Between tracking the state’s standard rate, navigating the rules around tipped worker credits, and preparing your budget for scheduled future increases, keeping your business compliant takes ongoing dedication.
Monitoring all these moving parts, especially during annual transition periods, can be tricky. That is why the first step in your compliance strategy should be setting up a dependable payroll process you can feel confident in. Reduce your risk and save hours of administrative time by getting started with OnPay today. Our team is here to answer your questions and here to help!
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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.