On January 1, 2026, the statewide minimum wage increased to $14.42 per hour in Vermont. This is 41 cents, or 2.9%, higher than last year.

More Information: Minimum Wage Increase Starting January 2026 – VT Department of Labor.

Under state law, the minimum wage is adjusted annually by the lower of 5% or the percent change in the consumer price index (CPI).

Vermont’s minimum wage law applies to all employers with two or more employees, and applies to most employees except those in agriculture, outside salespersons, students, and individuals employed in an executive, administrative, or professional capacity.

Tipped Employees. Vermont allows employers to pay a lower minimum rate to tipped employees who make at least $120 per month in tips. The tipped employee minimum wage rate is 50% of the regular minimum wage. This applies to employers in the hotel, motel, tourism, and restaurant industries.

For 2026, this means that applicable employers are required to pay $7.21 per hour to a tipped employee who makes at least $14.48 per hour including tips. If an employee does not make enough in tips to achieve an hourly rate of at least $14.48, the employer must pay the difference.

Other States. According to the U.S. Department of Labor, Vermont’s new minimum wage ranks 17^th highest in the country. Thirty states have minimum wage rates that exceed the federal rate of $7.25 per hour. Twenty states have rates equal to or less than the federal rate.

VT Workplace Posters. Vermont employers are required to post a minimum wage notice, along with numerous other mandatory posters, in the workplace: Vermont Mandatory Workplace Posters | Department of Labor.