Your Guide to the Pennsylvania Minimum Wage

Your Guide to the Pennsylvania Minimum Wage
Here's a guide to keep business owners in Pennsylvania up to date on state minimum wage requirements.
by Mary Hohn Nov 20, 2023 — 2 min read
Your Guide to the Pennsylvania Minimum Wage

Pennsylvania’s state minimum wage hasn’t changed since 2009, when it was increased to match the $7.25 federal minimum wage. However, the state continues to consider increasing the minimum wage. As a small business owner, it’s important to stay current on the latest developments so you know what to anticipate and can plan for the future.

To keep you up to date, we’ve put together this quick guide for business owners in the Keystone state.

What is the minimum wage in Pennsylvania?

Unless you’re a state employee, the Pennsylvania minimum wage is $7.25, which is the same as the federally mandated minimum. The minimum wage hasn’t changed since 2009, when it was raised by $0.10 as a result of the federal increase.

Some exemptions from the minimum wage rate include:

For state employees, the minimum wage is much higher. In the summer of 2018, Governor Tom Wolf signed an executive order, increasing the minimum wage to $12 per hour for state employees (up from $10.20 per hour). This increase went into effect on July 1, 2018.

Will the minimum wage change in 2024 and beyond?

While the Pennsylvania state government continues to show efforts to expand increases in hourly pay rate to all employees, there are no concrete changes planned. However, independent businesses within Pennsylvania are showing support for a $15.00 hourly pay rate. For example, Bucknell University introduced a $15.00 minimum wage in November 2021 for non-exempt college employees who are eligible for at least one year of benefits.

In addition, the 2018 Philadelphia minimum wage increase for municipal government workers, contractors, and subcontractors boosted the hourly pay rate from $14.25 to $15 in July 2022. From July 2023 and on, the increase will follow a percentage based on the Consumer Price Index.

How should small business owners prepare for changes to the minimum wage?

While a change to the state minimum wage isn’t imminent, it’s best to proactively prepare for when the time comes. We recommend taking the steps below to ensure your business is ready:


While these are helpful guidelines to follow, to make sure your business is prepared and stays in compliance, you should discuss Pennsylvania minimum wage laws with your accountant and lawyer.

Mary Hohn
Mary Hohn writes for Square, where she covers topics that affect business owners — from starting a business to growing a business — and the tools and technology that help them succeed.


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