Vermont minimum wage 2026

Vermont minimum wage per day, week, month and year

With a tip credit, your employer can pay you $7.21 an hour, but your wages plus tips have to reach $14.42 for every hour you work that week: $576.80 for a 40-hour week.

Will Vermont’s minimum wage go up in 2027?

Vermont adjusts its minimum wage for inflation every January 1 (by 5% at most), so it usually goes up. The 2027 rate hasn’t been published yet; the state announces it in the fall.

How the tip credit works in Vermont

Employers in Vermont can pay tipped workers $7.21 an hour as long as your wages plus tips for the workweek come to at least $14.42 for every hour worked. If they don’t, the employer has to pay the difference.

For example, 30 hours at $7.21 comes to $216.30. With $100.00 in tips, you’d have $316.30. The minimum for 30 hours is $432.60, so your employer owes you $116.30.

Try it with your own numbers.

Good to know

Applies to employers with 2 or more employees.

Overtime

Under federal law, hours over 40 in a workweek are paid at time and a half (1.5 times your regular rate): at Vermont’s minimum, at least $21.63 an hour. Vermont has no daily overtime: a 12-hour double only gets you overtime if it takes your week past 40 hours.

With a tip credit, your employer still has to pay you at least $14.42 in cash wages for each overtime hour: $21.63 minus the $7.21 tip credit. How overtime works with tips.

PayJar applies weekly overtime from the start and lets you turn on daily overtime and double time. Add up your week’s hours and overtime in the time card calculator.