By Payroll and Entitlements Editorial Staff
The minimum wage in Vermont will increase by 18 cents, from $10.78 to $10.96, beginning January 1, 2020, according to the Vermont Department of Labor. The minimum wage increase was determined by the Department of Labor’s Economic and Labor Market Information Division.
The calculation for this increase, as well as for subsequent years, is determined by state statute, which calculates the rate of inflation using the Consumer Price Index (CPI). The change reflects an increase of 1.7% to the CPI, which, when applied to last year’s minimum wage, raises the rate by $0.18 per hour. This adjustment also impacts the minimum wage of “tipped employees.” The Basic Tipped Wage Rate for service or tipped employees must equal at least 50% of the full minimum wage or $5.48 per hour starting January 1, 2020. The minimum wage will continue to increase each year with inflation as calculated by the Department of Labor. (State of Vermont, Department of Labor, Press Release, October 7, 2019.)
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