Minnesota workers on the lowest rung of the pay scale are getting a raise in the new year. The state minimum wage rises 3.99% to $11.87 an hour on Jan. 1, 2027, according to the Minnesota Department of Labor and Industry, and a lower 90-day training wage of $9.68 applies to workers under 20.
The increase arrives automatically, set by an inflation formula rather than a new vote. Two cities, Minneapolis and St. Paul, march to a higher beat, so the number on a paycheck depends partly on the zip code.
What the New $11.87 Rate Covers
The Department of Labor and Industry announced the adjustment on Aug. 19, 2026. The new rate of $11.87 applies to all employers in the state, up from $11.41 in 2026. That works out to the 3.99% increase named in the announcement.
The rate covers part-time and full-time hours alike, and workers must receive at least the minimum however they are paid. When both state and federal law apply, the department’s minimum wage page says the higher state rate wins. Minnesota also does not allow a tip credit, so tips are paid on top of the full minimum wage…