Alabama Minimum Wage (2026)
Built & reviewed by Nandu Kannan · Overtime rules cited to primary statutes
Alabama's minimum wage is $7.25 an hour in 2026. Alabama has no state minimum-wage law, so FLSA-covered employers pay the federal $7.25.
Alabama minimum-wage pay calculator
Pre-set to Alabama's $7.25 minimum. Change the hours, add overtime, and see weekly, monthly and annual gross pay update instantly.
Gross pay before taxes, at Alabama's minimum wage. Overtime at 1.5× the regular rate (federal FLSA); some states add daily overtime — see the state overtime calculator. Not payroll advice.
Tipped minimum wage in Alabama
The tipped minimum cash wage in Alabama is $2.13 an hour in 2026. Employers may claim a tip credit of up to $5.12 an hour against the full $7.25 minimum.
How the tip credit works: the employer pays the cash wage, and your tips count toward the minimum. If your cash wage plus tips don't add up to the full $7.25 for every hour worked, your employer must make up the difference.
Alabama has no state tipped-wage law, so the federal $2.13 cash wage and $5.12 tip credit apply.
Tipped rates as of January 2026, from the U.S. Department of Labor — Minimum Wages for Tipped Employees. Local and industry rules can differ and rates change — verify with your state labor office before relying on these figures.
When will Alabama's minimum wage go up?
Alabama has no scheduled minimum-wage increase. Alabama has no state minimum wage and no scheduled increase. It follows the federal $7.25, which has not changed since 2009; a raise would require new federal or state law.
Want to see the next change in every state? See our 2026–2027 minimum wage increases by state.
Scheduled increases verified as of June 2026, from the U.S. Department of Labor and the EPI Minimum Wage Tracker. Future inflation-indexed rates are set by the state later and are not predicted here. Dates and amounts can change — verify with your state labor office before relying on them.
Alabama minimum wage vs. the federal minimum
The federal minimum wage is $7.25 an hour. Alabama's effective minimum is $7.25 , so most workers here are covered by the federal floor.
Minimum-wage pay & overtime
At $7.25 an hour, overtime (1.5×) is $10.88 per hour. 1.5× after 40 hours in a workweek (federal FLSA). No state daily overtime. Run your own numbers with the Alabama overtime calculator or convert it to a yearly figure with the salary to hourly calculator.
Frequently asked questions
What is the minimum wage in Alabama in 2026?
The minimum wage in Alabama is $7.25 per hour as of 2026. Alabama has no state minimum-wage law, so FLSA-covered employers pay the federal $7.25.
How much is Alabama's minimum wage per year?
At $7.25 an hour, full-time (40 hours a week, 52 weeks) is about $15,080 a year before taxes, or $290 a week.
Is Alabama's minimum wage higher than the federal minimum?
No. Alabama effectively follows the federal minimum of $7.25. Alabama has no state minimum-wage law, so FLSA-covered employers pay the federal $7.25.
What is overtime pay on Alabama's minimum wage?
Overtime is 1.5× your regular rate, so a minimum-wage worker at $7.25 earns $10.88 per overtime hour. 1.5× after 40 hours in a workweek (federal FLSA). No state daily overtime.
What is the tipped minimum wage in Alabama?
The tipped minimum cash wage in Alabama is $2.13 an hour in 2026. Employers may claim a tip credit of up to $5.12 an hour, but the cash wage plus tips must still reach the full $7.25 minimum — if it falls short, the employer must make up the difference.
Do tipped workers get full minimum wage in Alabama?
Not always in direct cash. Alabama lets employers pay a lower cash wage of $2.13 and count tips toward the minimum (a "tip credit"). But your cash wage plus tips must add up to at least the full $7.25 minimum for every hour — if it doesn't, your employer must pay the difference.
When does Alabama's minimum wage increase?
Alabama has no scheduled minimum-wage increase. Alabama has no state minimum wage and no scheduled increase. It follows the federal $7.25, which has not changed since 2009; a raise would require new federal or state law.
What will Alabama's minimum wage be in 2027?
Under current law Alabama's minimum wage is expected to be about $7.25 an hour in 2027, unchanged from 2026, because there is no inflation indexing beyond any already-scheduled step. Alabama has no state minimum wage and no scheduled increase. It follows the federal $7.25, which has not changed since 2009; a raise would require new federal or state law.
Rate as of January 2026, from the U.S. Department of Labor. Cities and counties may set higher local minimums, and rates change — confirm with your state labor office. General information, not legal or payroll advice.
Related
What's a minimum-wage paycheck after taxes in Alabama?
Minimum wage by state · Alabama overtime · Overtime by state · Salary to Hourly
States with a similar minimum wage
Georgia — $7.25 · Idaho — $7.25 · Indiana — $7.25 · Iowa — $7.25 · Kansas — $7.25