MONTPELIER — The Vermont Department of Labor announced Thursday, Oct. 1, an increase to the State’s minimum wage. Beginning Jan. 1, 2021, the State’s minimum wage will increase $0.79, from $10.96 to $11.75 per hour. The calculation for this increase is in accordance with Act 86 of the 2019 Vermont General Assembly. 

This adjustment also impacts the minimum wage of “tipped employees.” The Basic Tipped Wage Rate for service or tipped employees equals 50% of the full minimum wage or $5.88 per hour starting Jan. 1, 2021. The minimum wage is set to increase to $12.55 per hour in 2022 as determined by current state statute. After 2022, the minimum wage will resume increasing annually with inflation as calculated by the Department of Labor.