Alabama Minimum Wage

Find current minimum wage rates and scheduled updates for states, cities, and counties in the U.S. with ERI's Geographic Assessor.

$7.25 (USD)/hr

Hourly Minimum Wage

$15,080 (USD)/yr

Yearly Minimum Wage

As of January 1, 2026

The hourly minimum wage in Alabama is $7.25, which is equal to the federal minimum wage of $7.25 per hour

Minimum wage is the lowest hourly wage, determined by law or contract, that an employer can pay an employee for a specified job. Minimum wage rates apply to most employees, with some exemptions defined by the Fair Labor Standards Act (FLSA). There are both federal and state minimum wage laws, and local entities, such as cities and counties, can also enact minimum wage laws. In cases where an employee is subject to multiple minimum wage laws, the employee is entitled to the highest of the minimum wage rates. States without minimum wage laws adhere to the federal minimum wage rate. States and local legislation have their own methodologies when determining rates and can make minimum wage changes at different times. ERI stays on top of those changes by continuously monitoring and tracking federal, state, and local minimum wage changes in our Geographic Assessor.

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Hourly Minimum Wage for Alabama and Nearby States

Compared to nearby states, Alabama's minimum wage rate is equal to Tennessee's rate of $7.25, is greater than Georgia's rate of $5.15, and is less than Florida's rate of $14.00 as of January 1, 2026.

As minimum wage laws can vary and change by state and local legislation, it is important to stay up to date on future changes to ensure compliance with minimum wage levels. Easily track current and scheduled minimum wage changes across the U.S. and Canada, see state minimum thresholds, and view state and local pay transparency rules in ERI's Geographic Assessor.

Alabama Minimum Tipped Wage

The minimum wage rate for tipped employees in Alabama is $2.13 per hour.

*For some states, minimum tipped wage depends on variables such as employer size, location, job type, or other specified by state law. Refer to the Minimum Wage tab in ERI's Geographic Assessor for detailed information.

A tipped employee is an individual whose job requires them to customarily and regularly receive more than $30 per month in tips or otherwise specified by the state. It is common for those who work in certain occupations, like waiters or bartenders, to be considered tipped employees because they often receive tips from customers. Tip rates and shift differentials (night shift, day shift, etc.) could affect total compensation in different states.

The minimum wage that employers are required to pay their tipped employees can be different depending on state law. In certain states, employers must pay their tipped workers the minimum wage even before they receive any tips. However, in other states, if the tips received by an employee do not add up to the minimum wage set by the minimum wage law, then the employer must pay the difference.

Alabama Minimum Wage Trend

Alabama's Minimum Wage in 2026: $7.25

Alabama's Minimum Wage in 2025: $7.25

Alabama's Minimum Wage in 2024: $7.25

Alabama's Minimum Wage in 2023: $7.25

As of January 1, 2026

Understanding trends in minimum wage updates should include knowing when these changes are expected to occur. Staying on top of these changes can prove vital in compensation planning given states and local entities are constantly updating minimum wage regulations. With ERI's Geographic Assessor, you can stay informed about future updates and use quick links to sources for further information. ERI keeps track of minimum wage increases and reports back on minimum wage pay rate changes by city, state, county, and more.

Minimum Wage by City in Alabama

Get enhanced minimum wage analysis at the city level with ERI's Geographic Assessor. View detailed minimum wage rates for cities, counties, and ZIP codes, as well as specific rates by industry and employee group. Learn about local and state pay transparency rules, minimum salary thresholds, and scheduled updates for better compensation decisions.

Find Minimum Wage Data by City

View Other Minimum Wages

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State Overview

Alabama, United States

The cost of living in Alabama, United States is 13% less than the average cost of living in the United States. Cost of living is calculated based on accumulating the cost of food, transportation, health services, rent, utilities, taxes, and miscellaneous.

View Cost of Living Page

Alabama ( , AL-ə-BAM-ə) is a state in the Southeastern and Deep Southern regions of the United States. It borders Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama is the 30th largest by area, and the 24th-most populous of the 50 U.S. states. Alabama is nicknamed the Yellowhammer State, after the state bird. Alabama is also known as the "Heart of Dixie" and the "Cotton State". The state has diverse geography, with the n

Sourced from Wikipedia

Latest Minimum Wage News

SalaryExpert, powered by ERI, provides up-to-date minimum wage data and scheduled updates for the United States and Canada. Check out our latest articles on minimum wage information and more.

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