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Pennsylvania Guide · Updated 2026

Pennsylvania Minimum Wage & Tip Credit

Pennsylvania's minimum wage tracks the federal floor and hasn't changed in years — but the tip-credit rules and the local-preemption point still trip employers up.

The rate: $7.25/hour

Pennsylvania's minimum wage is $7.25/hour — the same as the federal floor, and unchanged since 2009. Many bills to raise it have failed, so confirm whether a change has passed before assuming a higher number (PA Minimum Wage Act, 43 P.S. § 333.104).

A tip credit IS allowed

Unlike California and Nevada, Pennsylvania permits a tip credit. The tipped cash wage is $2.83/hour, and a worker only counts as "tipped" once they make more than $135/month in tips (2022 PA regulations). The employer must make up the difference so cash wages plus tips reach $7.25, and the 80/20 and tip-pooling rules apply (34 Pa. Code § 231.101a). Do not cite § 231.101 — it is {Reserved}, deleted effective November 19, 2022 (52 Pa.B. 7140). The tipped cash wage, the $135/month threshold and the make-up duty are all in § 231.101a(b).

No local minimum wages

Pennsylvania preempts local minimum wages, so a city or county cannot set its own higher rate. (This is different from local paid sick leave, which Philadelphia, Pittsburgh, and Allegheny County (26+ employees) do mandate — see our Pennsylvania local paid sick leave guide.)

Overtime & the exempt threshold

Overtime is 1.5× after 40 hours/week (no daily overtime). The executive, administrative and professional exemptions follow the federal FLSA salary level — $684/week ($35,568/yr) — after PA's higher thresholds were repealed by Act 70 of 2021. Pennsylvania has never adopted the FLSA's computer-employee or highly-compensated-employee exemptions.

Stay current

Post the required PA Minimum Wage notice and confirm the current rate with the PA Department of Labor & Industry (dli.pa.gov) before stating a figure as current.

This guide is general HR information, not legal advice, and doesn't replace legal counsel. Specifics should be tailored to your business and, for high-stakes or fact-specific matters, reviewed by a qualified Pennsylvania employment attorney.

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