Minimum Wage Changing On January 1st

(KNSI) – The Minnesota Department of Employment and Economic Development is reminding workers that the minimum wage will be increasing by 2.5% for 2026.

The rate jumps from $11.13 to $11.41 an hour on January 1st. That equates to an average annual salary of $23,150 across the whole state.

The minimum wage is higher in Minneapolis and St. Paul. For those two cities, the pay scale starts at $16.37 an hour for every business except for what are classified as micro employers in St. Paul. They’ll see minimum wage rise to $14.25 per hour on July 1, 2026.

One other exception is for new hires under the age of 20 being brought in on a training basis. They can be onboarded at a special minimum wage of $9.31 for the first 90 days they are on the payroll.

Minimum wage information must be posted in a heavily-trafficked place at every business where all employees have the opportunity to see it. The posters explain their rights under the law and the pay they are legally entitled to.

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