Minnesotans to See a Minimum Wage Increase on January 1st

Minnesota’s minimum wage is increasing January 1st.

The minimum wage will be $10.33 an hour for large employers and $8.42 an hour for other state minimum wages.  As of January 1st, 2021, the large employer wage increased to $10.08 per hour and small employer wage is $8.21 an hour.

These state minimum wage rates will not apply in Minneapolis and St. Paul, which have higher minimum wage rates.

Large employers are defined by the state as employers whose annual gross revenues are $500,000 or more.

Adjusting for inflation, the Minnesota Department of Labor and Industry’s 2021 minimum wage report found that the 2021 Minnesota large employer minimum wage of $10.08 per hour is below the average adjusted rate of the federal minimum wage for 1960 through 1980, which is $10.66.

When the Minneapolis and St. Paul minimum wages reach $15, they will be higher, adjusting for inflation, than the $12.37 peak reached by the adjusted federal minimum wage in 1968.