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Minimum Wage in Vermont

Vermont's minimum wage is $14.42 per hour in 2026, with a $7.21 basic wage for tipped employees, and it rises again on January 1, 2027.

Last checked . General information, not legal advice.

Vermont at a glance

Minimum wage (per hour)
$14.42
Effective January 1, 2026. Applies to employers of two or more employees.
Tipped cash wage (per hour)
$7.21
Half the minimum wage, for hotel, motel, tourist place and restaurant employees who receive more than $120 a month in tips.
Next scheduled increase
Inflation adjustment on January 1, 2027
Capped at the lesser of CPI or 5 percent. The 2027 amount was not shown on the state labor department page when checked.

Sources

Last checked

The rules in Vermont

What is the minimum wage in Vermont in 2026?

Minimum wage (per hour) in Vermont: $14.42. Effective January 1, 2026. Applies to employers of two or more employees.

What is the minimum cash wage for tipped employees in Vermont?

Tipped cash wage (per hour) in Vermont: $7.21. Half the minimum wage, for hotel, motel, tourist place and restaurant employees who receive more than $120 a month in tips.

When is the next minimum wage increase in Vermont?

Next scheduled increase in Vermont: Inflation adjustment on January 1, 2027. Capped at the lesser of CPI or 5 percent. The 2027 amount was not shown on the state labor department page when checked.

Where do the Vermont minimum wage laws come from?

The rules above come from Vt. Stat. Ann. tit. 21, 383 and Vt. Stat. Ann. tit. 21, 384. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Check which rate applies before setting pay. Coverage rules, employer size thresholds, and exemptions for certain jobs or industries differ, and a local ordinance may require more than the state rate. The statute linked on each state page is the starting point.

Where a lower tipped cash wage is allowed, the employer usually must make up the difference whenever tips fall short of the full minimum wage for the pay period. Keeping accurate records of hours worked and tips reported helps show that every pay period met the minimum.

Rates can change on fixed dates, often January 1 or July 1, and some states adjust them each year for inflation. Reviewing pay rates, offer letters, and employment contracts ahead of each scheduled change helps avoid underpayment claims.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.