Augusta — According to the Maine Department of Labor, both the basic minimum wage and the tipped service wage will increase next Wednesday.
The basic minimum wage will go up from $14.15 to $14.65 per hour. Maine law was amended in 2016 to adjust the minimum wage annually in accordance with the Northeast region’s cost of living index. Between August 2023 and August 2024, the cost of living increased by 3.6 percent.
For a full-time employee, this results in a $20 weekly pay increase, or $1,040 per year.
Tipped wages, also known as service employee minimum wages, will increase to $7.33 per hour. In addition, employers must demonstrate that the employee earns the minimum wage of $14.65 when the tipped wage and tips are combined each week. The number of tips required to earn the minimum wage in 2025 will be $185 per month, up from $179 last year.
Furthermore, the minimum salary for being considered “exempt” from overtime pay will increase to 3,000 times the state’s minimum wage or the rate established by the Department of Labor, whichever is higher.
Workers earning less than $1,128 per week, or $58,656 annually, will now be automatically eligible for overtime. People earning more than this amount may be eligible for overtime pay, depending on their job duties, collective bargaining agreements, and other factors.