Michigan’s minimum wage rate will increase to $9.87 per hour on Jan. 1, 2022, an increase from the current $9.65. Michigan’s Improved Workforce Opportunity Wage Act of 2018 establishes the annual schedule and increases.

The Michigan Wage & Hour Division announced that while the law does prohibit scheduled increases when the state’s annual average unemployment rate for the preceding calendar year is above 8.5 percent, it is highly unlikely Michigan will exceed this threshold causing another delay as occurred in 2021.

The state’s 2021 annual unemployment rate, which is determined by the Bureau of Labor Statistics (BLS), U.S. Dept. of Labor, is calculated by using both average labor force and unemployment levels for January through December. The annual average unemployment rate for 2021 is expected to remain well below 8.5 percent.

Effective Jan. 1, 2022:

• Michigan’s minimum wage will increase to $9.87 per hour.
• The 85 percent rate for minors aged 16 and 17 increases to $8.39 per hour.
• Tipped employees rates of pay increases to $3.75 per hour.
• The training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged. 

A copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster, may be obtained for free by visiting Michigan.gov/wagehour.