By Payroll and Entitlements Editorial Staff
The Vermont minimum wage will increase 79 cents, from $10.96 to $11.75 per hour beginning January 1, 2021, according to the Vermont Department of Labor in a recent announcement. The calculation for this increase is in accordance with Act 86 of the 2019 Vermont General Assembly.
This adjustment also impacts the minimum wage of “tipped employees.” The Basic Tipped Wage Rate for service or tipped employees equals 50% of the full minimum wage or $5.88 per hour starting January 1, 2021.
The state minimum wage is set to increase to $12.55 per hour in 2022 as determined by current state statute. After 2022, the minimum wage will resume increasing annually with inflation as calculated by the Department of Labor. (State of Vermont, Department of Labor, Press Release, October 8, 2020).
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