Beginning Jan. 1, 2020, the state’s minimum wage will increase $.18, from $10.78 to $10.96, as determined by the Department of Labor’s Economic & Labor Market Information Division.
The calculation for this increase, as well as for subsequent years, is determined by state statute, which calculates the rate of inflation using the Consumer Price Index (CPI).
The recent increase of 1.7% to the CPI, applied to last year’s minimum wage, raised the rate by $.18 per hour, the Vermont Department of Labor announced Monday, Oct. 7, 2019.
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 $5.48 per hour starting Jan. 1, 2020. The minimum wage will continue to increase each year with inflation as calculated by the Department of Labor.
For more information about the Vermont Department of Labor, visit labor.vermont.gov.
