Pennsylvania Minimum Wage 2026: Rates, Tipped Wage and Rules

Short answer: The Pennsylvania minimum wage is $7.25 per hour in 2026, the same as the federal rate and unchanged since July 24, 2009. Tipped employees who receive at least $135 a month in tips may be paid $2.83 per hour in cash, as long as tips bring them to $7.25. No increase is scheduled for January 1, 2027.
Pennsylvania restaurant owner reviewing server tips and hours
Pennsylvania adds its own tip rules on top of the $7.25 minimum.

Pennsylvania minimum wage rates for 2026

Rate type Amount
Standard minimum wage $7.25 per hour
Tipped employee cash wage $2.83 per hour
Maximum tip credit $4.42 per hour
Who counts as tipped Employees who receive at least $135 a month in tips
Learners and students (special certificate) 85% of the minimum wage
Overtime 1.5x the regular rate after 40 hours in a workweek

Sources: 34 Pa. Code section 231.101a, the Department of Labor and Industry (L&I) Minimum Wage Law Summary and the U.S. DOL tipped wage table.

Why the rate is still $7.25

Pennsylvania’s Minimum Wage Act sets $7.25, effective July 24, 2009, matching the federal rate. The U.S. Department of Labor state table, updated November 5, 2026, still lists $7.25, and no official source we checked shows an increase for January 1, 2027. Watch L&I for any change.

Tipped employees and the 80/20 rule

L&I’s tipped worker rules, in effect since August 5, 2022, go further than many states:

Check the math with the tip credit calculator and read our tip pooling rules.

Learners, students and exemptions

With a Special Certificate from the Bureau of Labor Law Compliance, learners may be paid 85% of the minimum for up to 40 hours a week for up to eight weeks, and bona fide high school or college students for up to 20 hours a week, or 40 during school vacations. Exemptions from both minimum wage and overtime include farm labor, domestic service in a private home, golf caddies, newspaper delivery, outside sales and properly classified executive, administrative and professional employees. For hours rules for minors and pay timing, see our Pennsylvania labor laws guide.

Overtime in Pennsylvania

Non-exempt employees earn 1.5 times their regular rate after 40 hours in a workweek. For non-exempt salaried staff, L&I divides weekly pay by 40 to find the regular rate, and bonuses count in the week paid. See the FLSA overtime rules too.

Worked example: one week at $7.25

For a tipped server, overtime is based on the full $7.25: each overtime hour costs at least $10.875 minus the $4.42 tip credit, or $6.46 in cash.

How Pennsylvania compares with neighbors

State Basic minimum wage (Nov. 2026)
Pennsylvania $7.25
New York $16.00 ($17.00 in NYC, Long Island and Westchester)
New Jersey $15.92
Delaware, Maryland $15.00
Ohio $11.00 (larger employers)
West Virginia $8.75

Figures from the U.S. Department of Labor state table, updated November 5, 2026. Employers near state lines often pay well above $7.25 to hire.

Pennsylvania employer checklist

  1. Post the L&I minimum wage summary in a visible place.
  2. Pay at least $7.25, or $2.83 cash plus tips that reach $7.25.
  3. Track side work so tip-credited staff stay within the 80/20 limit.
  4. Never deduct card fees from tips.
  5. Keep accurate records of hours and earnings.

Track tipped and side-work hours

EZTime’s GPS time clock app records punches by phone, kiosk or NFC tap, sends overtime alerts and builds payroll-ready exports. Use shift scheduling and tasks to plan side work.

Frequently asked questions

What is the minimum wage in Pennsylvania?

$7.25 per hour, the same as the federal rate, effective since July 24, 2009.

What is the tipped minimum wage in Pennsylvania?

$2.83 per hour in cash for employees who receive at least $135 a month in tips. Wages plus tips must reach $7.25.

What is Pennsylvania’s 80/20 tip rule?

A tip-credited employee may spend no more than 20% of weekly hours on non-tipped work. Time over that limit must be paid at $7.25.

Related pages

Keep Pennsylvania tip credits compliant. Start your 14-day trial or book a demo.

Updated November 2026. Rates verified against official state sources on November 14, 2026. General information only; not legal advice.