Massachusetts minimum wage is increasing in January; And another raise is coming in 2023

Updated: Dec. 03, 2021, 12:59 p.m. | Published: Dec. 03, 2021, 12:56 p.m.

By Heather Morrison | hmorrison@masslive.com

In less than a month, the Massachusetts minimum wage will be increasing to $14.25.

In 2021, the minimum wage in the commonwealth was $13.50, which had increased from 2020′s wage of $12.75.

The consistent yearly increases will continue through 2023 when the minimum wage will be $15.

“Minimum wage will go up in steps to reach $15 per hour in January 2023,” the Massachusetts government website states.

Tipped minimum wage, however, is different.

Currently tipped employees minimum wage is $5.55. It was increase in January to $6.15.

“This rate will go up in steps to reach $6.75 per hour in January 2023,” the website states.

A tipped employee is considered anyone who makes more than $20 a month in tips. However, they must receive at least the overall minimum wage, which is currently $13.50, when tips and wages are combined.

“If the combined wages and actual tips do not at least equal the regular minimum wage, the employer must pay the employee the difference,” the state said.

The federal minimum wage is much lower than the commonwealth’s.

Currently, the federal minimum wage is $7.25 per hour, which began July 24, 2009.

Certain businesses have also begun raising their own minimum wages.

Costco increased its minimum wage from $16 an hour to $17. Bank of America raised its minimum hourly wage to $21 with a plan to go to $25 per hour by 2025. CVS Health is also increasing its minimum hourly wage to $15 an hour starting July 2022.