New year, new minimum wage rates starting January 1 – Alexandria Echo Press
Minnesota minimum wage rates will be adjusted for inflation beginning January 1, 2022, at $10.33 per hour for large employers and $8.42 per hour for other minimum wages of State.
As of January 1, 2021:
- Large employers must pay at least $10.33 per hour when the employer’s annual gross revenues are $500,000 or more.
- Small employers must pay at least $8.42 per hour when the employer’s annual gross revenues are less than $500,000.
- The training wage rate, $8.42 per hour, may be paid to employees under age 20 for the first 90 consecutive days of employment.
- The youth hourly rate, $8.42, can be paid to employees under 18.
These state minimum wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum wage rates.
The Minnesota Department of Labor and Industry also released its 2021 Minnesota Minimum Wage Report.
Actual Minimum Wages for Minnesota, Minneapolis, and St. Paul: Minnesota’s minimum wage, $10.08 per hour for large employers in 2021, is adjusted annually for inflation. Minimum wages for employers of various sizes in Minneapolis and St. Paul will reach $15.00 in various years from 2022 to 2027 and will be adjusted for inflation thereafter.
Actual annual earnings at minimum wage: For workers earning the Minnesota minimum hourly wage and working 40 hours per week, annual wages in 2021 are $20,966 for workers at large employers and $17,077 for workers at small employers. employers. As of July 1, 2021, Minneapolis workers earned a full-time annual salary of $29,640 at large employers and $26,000 at small employers, while St. Paul workers earned $26,000 at large employers. and $22,880 from small employers.
Inflation-Adjusted Minimum Wage: Adjusted for inflation, Minnesota’s 2021 large employer hourly minimum wage of $10.08 is slightly lower than the average federal minimum wage rate from 1960 to 1980, which was $10.66. When the Minneapolis and St. Paul minimum wages reach $15.00, they will be higher, adjusting for inflation, than the $12.37 peak reached by the federal minimum wage in 1968.