2021 Alaska Minimum Wage
The 2021 Alaska Minimum Wage is $10.34.
Effective 2021-01-01Source: Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)Verified 2026-08-31
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Hourly | $10.19 | $10.34 | +$0.15 (+1.5%) |
Who it applies to
Employers and employees in the State of Alaska
What changed this year, and why
Alaska's minimum wage increased to $10.34 per hour, effective January 1, 2021, up from $10.19 per hour in 2020.
Common questions
- Does the minimum wage apply to tipped employees?
- Yes. In Alaska, tips do not count toward the minimum wage; employers must pay the full minimum wage regardless of tips received.
- How is the Alaska minimum wage adjusted each year?
- Alaska law requires an annual adjustment based on changes in the Consumer Price Index for urban consumers in the Anchorage metropolitan area.
Minors, students and training wages: who may be paid less than the rate on this page
In Alaska, the $10.34 hourly minimum wage is the baseline for nearly every worker, but the law recognizes that a specific exemption may allow an employer to pay less. An employer must be able to clearly show that such an exemption exists before paying below the stated rate. Alaska does not permit a tip credit, so tips cannot be counted toward meeting the minimum wage. The statute also sets special floors for certain roles: public school bus drivers must earn at least twice the current Alaska minimum wage, and exempt salaried employees must be paid at twice the hourly rate on a salary basis to maintain their exempt status. Workers in Alaska who believe their employer is misapplying an exemption should contact the Wage/Hour division of the Alaska Department of Labor and Workforce Development for guidance.
All actual hours worked in a pay period multiplied by the Alaska minimum wage is the very least an employee can be compensated by an employer unless the employer can clearly show that a specific exemption exists.
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
Who to ask about this rate, and where to take a wage complaint
Workers in Alaska with questions about the $10.34 minimum wage, or who believe their employer is not paying it, should consult the relevant state labor office. The Alaska Department of Labor and Workforce Development operates a Wage/Hour division that handles minimum wage and overtime questions. The statewide supervising investigator for the Wage/Hour division can be reached by phone or email. General inquiries to the Office of the Commissioner can also be submitted by email. More information about Alaska's wage laws is available on the department's website at the address listed in the press release. A wage complaint may be filed with this office if an employer is not meeting the state's minimum wage requirements.
Joe Dunham Statewide Supervising Investigator Wage/Hour division (907) 269-4900 joseph.dunham@alaska.gov
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
State minimum wage laws that give more than the federal rate
Alaska's $10.34 hourly minimum wage exceeds the federal minimum wage, and by law Alaska's rate must remain at least $1 per hour above the federal floor. When a state sets a higher minimum wage than the federal government, the higher state rate is the one that applies to workers in that state. Some state laws provide greater employee protections than federal law, and Alaska is an example: its minimum wage is higher and its wage laws include additional requirements such as the rule that public school bus drivers must be paid at least twice the state minimum wage. Alaska workers are entitled to the more beneficial rate, which in this case is the state's $10.34 hourly minimum.
By law, Alaska’s minimum wage must remain at least $1 per hour over the federal minimum wage.
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
When tips, meals or lodging count toward the minimum wage
In Alaska, tips do not count toward the minimum wage. Unlike some states that allow employers to take a tip credit and count tips as part of the minimum wage obligation, Alaska requires employers to pay the full $10.34 hourly minimum wage on top of any tips received. The value of meals or lodging also cannot be credited against the minimum wage in Alaska. This means that tipped workers in Alaska, such as restaurant servers, must receive at least $10.34 per hour in base wages from their employer before tips are considered. Employers in Alaska cannot reduce the cash wage below $10.34 by claiming that tips make up the difference.
Tips do not count toward the minimum wage.
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
Why the federal rate applies when the state rate is lower
Alaska's minimum wage of $10.34 per hour is higher than the federal minimum wage, so the state rate applies. If a state's minimum wage were lower than the federal rate, the federal minimum wage would apply instead, with some limited exceptions. Because Alaska's rate exceeds the federal floor by more than $1 per hour, Alaska workers receive the benefit of the higher state rate. The requirement that Alaska's minimum wage remain at least $1 above the federal minimum wage ensures that the state rate will always be meaningfully higher than the federal rate. Employers in Alaska must pay at least $10.34 per hour, not the lower federal amount.
By law, Alaska’s minimum wage must remain at least $1 per hour over the federal minimum wage.
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Alaska Minimum Wage Will Increase in 2021 (News Release No. 20-32) (Alaska Department of Labor and Workforce Development)
- Hourly
The Alaska minimum wage will increase from $10.19 to $10.34 effective Jan. 1, 2021.
Other years
Every Alaska Minimum Wage year · Minimum Wage in every state