Montanans earning minimum wage will see the rate increase to $8.75 per hour beginning Jan. 1, 2021.
An estimated 8,000 to 10,000 Montana workers, or two percent of the workforce, received hourly wages less than $8.75 per hour in 2020 and are likely to receive higher wages due to the 2021 minimum wage increase. Many minimum-wage workers are frontline workers who are at the greatest risk of COVID-19 exposure.
The minimum wage is determined by taking the current minimum wage of $8.65 and increasing it by the CPI-U increase from August of 2019 to August 2020. The CPI-U increased by 1.31% (unadjusted) over the year ending August 2020. State statute requires the wage to rounded to the nearest 5 cents, the 2021 minimum wage rate will be $8.75.
In 2020, the District of Columbia and 29 U.S. states, including Montana, have minimum wage rates that exceed the federal rate of $7.25 per hour.
A map of state minimum wage laws is available on the U.S. Department of Labor’s website at: