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The federal minimum wage applies in states with no state minimum wage or a minimum wage lower than the federal rate (column titled "No state MW or state MW is lower than $7.25."). Some of the state rates below are higher than the rate on the main table above. That is because the main table does not use the rate for cities or regions.
As of October 2023, France has the highest hourly minimum wage at $13.80 per hour. [1] The United States has a comparatively low minimum wage for hourly workers at $7.25 per hour. Unusually, this rate does not apply to tipped employees, who are only entitled to an hourly wage of $2.13, which contributes to a strong tipping culture in the country.
Average wage in the United States was $69,392 in 2020. [1] Median income per person in the U.S. was $42,800 in 2019. [ 2 ] The average is higher than the median because there are a small number of individuals with very high earnings, and a large number of individuals with relatively low earnings.
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Federal rates are calculated based on regulations established by the US Department of Labor.According to Code of Federal Regulations, "The prevailing wage shall be the wage paid to the majority (more than 50 percent) of the laborers or mechanics in the classification on similar projects in the area during the period in question.
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Minimum wage rate is automatically adjusted annually based on the U.S. Consumer Price Index. Income from tips cannot offset an employee's pay rate while same minimum wage applied for both tipped and non-tipped employees. The state minimum wage for business with less than $110,000 in annual sales is $4.00. [1] [264] Nebraska: $12.00 [265] $2.13
As of January 3, 2022, effective state minimum wage rates range from US$7.25 to US$15.00 per hour, with an average of about $12.00 across all minimum wage workers as of 2019. [ 244 ] [ 245 ] [ 246 ] Local government minimum wages exist as well, the highest of which reach to $17.13 per hour.
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