Pennsylvania Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, Pennsylvania's minimum wage is $7.25 per hour — the same as the federal floor under the Fair Labor Standards Act (FLSA). Pennsylvania has not raised its rate above the federal minimum since 2009, and the state's Minimum Wage Act ties the floor to that figure unless the General Assembly votes to change it. For tipped workers, the state allows a cash wage as low as $2.83 per hour, provided tips bring the worker up to at least $7.25 for every hour worked. Because Pennsylvania law preempts local governments from setting their own wage floors, there is no city or county minimum wage in Philadelphia, Pittsburgh, or anywhere else in the Commonwealth that applies to private employers. Always confirm the current figures with the Pennsylvania Department of Labor & Industry before relying on them, because rates can change when the legislature acts.

The current Pennsylvania minimum wage

Pennsylvania's standard minimum wage of $7.25 an hour is set by the Pennsylvania Minimum Wage Act of 1968 and currently mirrors the federal FLSA rate dollar-for-dollar. Unlike many neighboring states — New York, New Jersey, Maryland, Delaware, and Ohio all sit well above $7.25 — Pennsylvania has kept its floor at the federal baseline. There is no automatic cost-of-living escalator and no inflation indexing built into Pennsylvania law. The rate stays at $7.25 until the General Assembly passes, and the Governor signs, a bill raising it. Proposals to increase the Pennsylvania minimum wage are introduced in most legislative sessions, so the figure could change; that is exactly why you should verify the number against the state's official source rather than assume it is fixed.

When a worker is covered by both state and federal law, the higher rate applies. Because Pennsylvania and the FLSA are identical at $7.25, that distinction does not currently change anyone's paycheck in the Commonwealth — but if either floor rises, the higher one governs.

Tipped employees: the cash wage and tip credit

Pennsylvania lets employers of tipped workers pay a reduced direct cash wage of $2.83 per hour and count the worker's tips toward the remaining $4.42 needed to reach $7.25. This is called the tip credit. The arrangement is only lawful if the employee's tips actually make up the difference; if they do not, the employer must pay the shortfall so the worker earns at least the full $7.25 for every hour on the clock.

Pennsylvania updated its tipped-wage regulations effective August 5, 2022, and several of those rules matter:

• Who counts as "tipped." A worker qualifies as a tipped employee — and can be paid the $2.83 cash wage — only if they receive more than $135 per month in tips. This raised the old $30-per-month threshold and means employees with modest tips must be paid the full minimum wage in cash.
• The 80/20 rule. An employer may take the tip credit only when the employee spends no more than 20% of their weekly hours on duties that do not directly generate tips (side work such as cleaning, rolling silverware, or stocking). Time beyond that 20% must be paid at the full $7.25.
• Tip pooling. Tips belong to the employee. Employers, managers, and supervisors generally cannot share in a mandatory tip pool. Valid pools may be shared among employees who customarily receive tips.
• Service charges. An automatic service charge added to a bill is not the same as a tip. Pennsylvania requires that such charges be clearly disclosed to customers so patrons understand the fee is not a gratuity to the server.
• Credit-card fees. When tips are left on a credit card, the rules limit how employers handle processing-fee deductions, and the worker must still net at least the minimum wage.

Overtime in Pennsylvania

Pennsylvania also requires overtime at one and one-half times the regular rate for hours worked over 40 in a workweek, consistent with the FLSA's weekly-40 standard. Pennsylvania does not have a daily overtime rule the way some states do; the trigger is the 40-hour week. For tipped workers, overtime is calculated on the full minimum wage, not the $2.83 cash wage — a point employers sometimes get wrong. Certain workers, such as bona fide executive, administrative, and professional employees, may be exempt from overtime, but exemptions are narrow and depend on actual job duties and salary, not job titles.

Who is and isn't covered

Most Pennsylvania employees are covered by the Minimum Wage Act, but there are exceptions. Some agricultural workers, certain seasonal and recreational employees, newspaper deliverers, and specific categories of workers may be treated differently under state or federal law. Students and learners can sometimes be paid subminimum rates under special certificates. Independent contractors are not "employees" and are not covered at all — but misclassifying an employee as a contractor to avoid the minimum wage is unlawful, and Pennsylvania scrutinizes misclassification, especially in construction. If you are unsure whether your job is covered, the state labor agency can help you assess your status.

No local minimum wages

Pennsylvania is one of the states that preempts local wage-setting. Cities and counties cannot enact their own minimum wage ordinances binding private employers, so workers across the Commonwealth are governed by the single statewide floor. Philadelphia has used its authority over its own contractors and certain city-related employment to set higher standards in narrow contexts, but there is no general citywide minimum wage that covers all private-sector jobs in Philadelphia or Pittsburgh. For the vast majority of Pennsylvania workers, $7.25 is the number that controls.

How to enforce your rights

If an employer pays you below the minimum wage, fails to make up a tipped worker's shortfall, or miscalculates overtime, you can file a wage claim. The agency that administers and enforces Pennsylvania's wage laws is the Pennsylvania Department of Labor & Industry, through its Bureau of Labor Law Compliance. You can file a complaint with that bureau, which investigates unpaid-wage and minimum-wage violations. Workers covered by the FLSA may alternatively file with the U.S. Department of Labor's Wage and Hour Division. Keep your own records — pay stubs, schedules, and tip logs — because documentation makes a wage claim far easier to prove.

Pennsylvania law prohibits employers from retaliating against workers who assert their wage rights or file a complaint. If you experience demotion, a cut in hours, or termination after raising a pay issue, that retaliation may itself be unlawful and worth reporting.

Where to confirm the current rate

Wage figures and tipped-employee rules can change when the legislature or regulators act, so treat the numbers here as a starting point. Confirm the current Pennsylvania minimum wage, the tipped cash wage, and the latest tip-credit rules directly with the Pennsylvania Department of Labor & Industry, which publishes the official rates and the Minimum Wage Act regulations. For federal comparisons, the U.S. Department of Labor publishes the FLSA minimum wage and overtime standards. When state and federal rules differ, the one more favorable to the worker applies.

Official Pennsylvania Sources

This page is based on Pennsylvania employment law. Rules and figures change — verify the current details directly with the official Pennsylvania sources below. This is general legal information, not legal advice.

• Pennsylvania Department of Labor & Industry — official Pennsylvania agency.
• File a Wage Payment and Collection Complaint
• Wage Payment and Collection Law (Act of July 14, 1961, P.L. 637, No. 329)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Pennsylvania state law.