Pennsylvania Minimum Wage Act
Pennsylvania's minimum wage is governed by the Pennsylvania Minimum Wage Act (Act of 1968, as amended), codified at 43 P.S. §§ 333.101–333.115 and administered by the Pennsylvania Department of Labor & Industry (DLI). The current rate of $7.25/hr has been unchanged since July 24, 2009 — the date the federal minimum wage last increased — and Pennsylvania has no CPI-indexing or scheduled future increases in its current statute.
Basic formula
For example, 45 hours worked in a week yields $290.00 in regular pay plus $54.38 in overtime pay ($10.875 × 5), for a total minimum gross of $344.38.
Tipped workers and the tip credit
Pennsylvania allows a tip credit. The direct cash wage for a tipped worker is $2.83/hr. The employer may claim the credit only when the employee actually earns at least $135 per month in tips. If tips in any workweek do not bring total compensation to $7.25/hr, the employer must make up the difference for that workweek.
The 2022 80/20 tipped-duty rule
Pennsylvania's 2022 regulation update — which aligns with the federal DOL's own 80/20 guidance — prohibits employers from taking the tip credit for any portion of a workweek during which a tipped employee spends more than 20% of their total working time on non-tip-generating duties (such as cleaning, prep work, or restocking). Any time over the 20% threshold must be compensated at the full $7.25/hr minimum, not the $2.83 tipped direct wage. This rule is administered by the Pennsylvania DLI Bureau of Labor Law Compliance.
Wage Payment and Collection Law
The Pennsylvania Wage Payment and Collection Law (Act 329 of 1961) imposes strict timing and penalty rules on wage payments. The waiting period from the end of any pay period to the payday cannot exceed 15 days. If an employer fails to pay wages within 30 days of the scheduled payday, the employee is entitled to liquidated damages of 25% of the unpaid wages, with a minimum of $500 — making Pennsylvania's wage-claim penalty sharper than in most neighboring states, including Ohio and New Jersey.
Pennsylvania compared to neighboring Ohio
Ohio borders Pennsylvania to the west and presents the sharpest minimum wage contrast of any neighboring state. Ohio's minimum wage is constitutionally mandated to increase each January 1 by the CPI-W under Art. II § 34a, reaching $11.00/hr in 2026 — $3.75 above Pennsylvania's static $7.25. Ohio's gross-receipts exemption (small employers pay only $7.25) creates a two-tier system, but even the lower tier matches Pennsylvania's top rate. Pennsylvania has no comparable indexing mechanism; its minimum wage can only increase through a new act of the General Assembly.
What this page does not determine
- Whether a specific employer qualifies for any exemption under the Pennsylvania Minimum Wage Act or FLSA.
- Whether a specific worker is a tipped employee eligible for the tip credit.
- Whether the 80/20 tipped-duty rule has been violated in a specific workweek.
- Overtime calculations — Pennsylvania follows FLSA weekly-40; the Pennsylvania Overtime page covers this separately.
- Final paycheck deadlines — see the Pennsylvania Final Paycheck page.
- Prevailing wage for public works — administered by the DLI Bureau of Labor Law Compliance.
Sources and verification
The $7.25 rate and July 24, 2009 effective date were verified from the Pennsylvania DLI Minimum Wage Act page. The tipped direct wage ($2.83) and tip threshold ($135/month) are from the same source. The 80/20 tipped-duty rule is from the 2022 DLI regulation update, confirmed from the DLI overtime page. The Wage Payment and Collection Law penalty is cited from the DLI compliance overview. Verification date: August 2026. See the site's methodology for source standards.