By Payroll and Entitlements Editorial Staff
Montana Governor Steve Bullock on October 9, 2020, announced Montanans earning minimum wage will see the rate increase to $8.75 per hour beginning January 1, 2021.
The minimum wage is determined by taking the current minimum wage of $8.65 and increasing it by the CPI-U increase from August of 2019 to August 2020. The CPI-U increased by 1.31% (unadjusted) over the year ending August 2020. To keep the minimum wage at the same purchasing power as the prior year, the wage should increase by $0.11 per hour. However, since state statute requires the wage to rounded to the nearest 5 cents, the 2021 minimum wage rate will be $8.75. (State of Montana, Office of the Governor, Press Release, October 9, 2020; Montana Department of Labor and Industry, Minimum Wage Announcement, October 2020).
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