2023 Vermont Minimum Wage
The 2023 Vermont Minimum Wage is $13.18.
Effective 2023-01-01Source: Wage and Hour (Vermont Department of Labor)Verified 2026-08-30
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Hourly | $12.55 | $13.18 | +$0.63 (+5.0%) |
Who it applies to
Employers and employees in Vermont subject to the state minimum wage law.
What changed this year, and why
Vermont's minimum wage increased to $13.18 per hour, effective January 1, 2023, up from $12.55 per hour in 2022.
Common questions
- When does Vermont's minimum wage change each year?
- Vermont adjusts its minimum wage each year, with new rates taking effect on January 1.
- Does the federal minimum wage still apply in Vermont?
- Yes. Vermont's minimum wage is adjusted annually and is typically higher than the federal minimum wage. Employers must comply with whichever law provides the greater protection to the employee.
Overtime is paid at one and one-half times the regular rate
Vermont's Wage & Hour Program oversees state law concerning overtime pay. When employees work beyond their normal weekly hours, they are entitled to overtime compensation. The program also oversees rules about minimum wage, wage payments, employee benefits, child labor, and workplace rights for employees and employers in Vermont. If you believe your employer is not paying you the correct overtime rate under Vermont law, contact the Wage and Hour program. The program provides information on wage and employment related issues and attempts to settle employer and employee wage disputes to the satisfaction of all parties. Workers in Vermont should be aware that overtime protections are part of the state's wage and hour laws administered by the Department of Labor. Vermont's minimum wage is $13.18 per hour, and overtime is calculated based on that rate.
The Wage & Hour Program oversees state law and adopted rules concerning minimum wage, overtime, wage payments, employee benefits, child labor, and workplace rights for employees and employers.
Wage and Hour (Vermont Department of Labor)
Who to ask about this rate, and where to take a wage complaint
If you have questions about Vermont's minimum wage of $13.18 per hour or need to file a wage complaint, contact the Vermont Department of Labor's Wage and Hour program. The program provides information on wage and employment related issues and attempts to settle employer and employee wage disputes to the satisfaction of all parties. The Wage and Hour program is part of the Vermont Department of Labor, which is based in Montpelier, Vermont. Contact the Wage and Hour program as soon as you have a problem, because the longer a wage dispute continues, the more difficult it becomes to reach a solution. The program works to resolve disputes promptly. Vermont workers who believe they are being paid below the state minimum wage or who have other wage concerns should reach out to this program for help.
Contact the Wage and Hour program as soon as you have a problem. We are usually able to reach a settlement between employers and employees, but the longer the problem continues, then the more difficult it is to reach a solution.
Wage and Hour (Vermont Department of Labor)
State minimum wage laws that give more than the federal rate
Federal wage and hour laws differ from Vermont law regarding minimum wage requirements. Vermont's minimum wage of $13.18 per hour is higher than the federal rate, so Vermont employers must follow the state law. However, workers and employers should understand their rights and obligations under both the federal Fair Labor Standards Act and Vermont state law. The U.S. Department of Labor can be contacted at (603) 666-7716 for information about federal requirements. Vermont's Wage & Hour Program oversees state law concerning minimum wage, overtime, wage payments, employee benefits, child labor, and workplace rights. When both federal and state laws apply, the law that provides greater protection to workers governs the employment relationship in Vermont.
Remember, federal wage and hour laws differ from Vermont law, so you should also contact the U.S. Department of Labor (603) 666-7716 regarding your rights and obligations under the Fair Labor Standards Act.
Wage and Hour (Vermont Department of Labor)
When tips, meals or lodging count toward the minimum wage
Vermont's minimum wage law includes special provisions for tipped employees. As of January 1, 2023, the minimum wage is $13.18 per hour for regular employees, but tipped employees may be paid $6.59 per hour. This lower cash wage for tipped workers recognizes that tips received from customers count toward meeting the minimum wage requirement. The difference between the tipped minimum wage of $6.59 and the full minimum wage of $13.18 represents the amount employers expect workers to earn through tips. If a tipped employee's tips combined with the cash wage do not equal the full minimum wage, the employer must make up the difference. Vermont's Wage & Hour Program oversees these rules and can help resolve disputes about tip credits and minimum wage compliance for workers in restaurants, hotels, and other service industries.
Effective 01/01/2023: $13.18 per hour worked / $6.59 for tipped employees
Wage and Hour (Vermont Department of Labor)
Why the federal rate applies when the state rate is lower
Vermont's minimum wage of $13.18 per hour is higher than the federal minimum wage, so Vermont employers must pay the state rate. When a state sets a lower minimum wage than the federal government, the federal rate applies with some limited exceptions. However, in Vermont's case, the state rate exceeds the federal floor, so workers are protected by the more generous state law. The Vermont Department of Labor oversees enforcement of state wage laws, while the U.S. Department of Labor enforces federal requirements under the Fair Labor Standards Act. Vermont workers should contact the U.S. Department of Labor at (603) 666-7716 if they have questions about federal law, but their employers must follow Vermont's higher minimum wage rate of $13.18 per hour rather than any lower federal standard.
Remember, federal wage and hour laws differ from Vermont law, so you should also contact the U.S. Department of Labor (603) 666-7716 regarding your rights and obligations under the Fair Labor Standards Act.
Wage and Hour (Vermont Department of Labor)
How the rate is adjusted each year, and who announces it
Vermont's minimum wage is adjusted annually to keep pace with inflation. The adjustment takes effect on January 1 of each year. For 2023, the rate is $13.18 per hour. This cost-of-living adjustment ensures that the purchasing power of the minimum wage does not erode over time due to rising prices. The Vermont Department of Labor calculates and announces these annual adjustments. Workers and employers in Vermont should be aware that the minimum wage rate changes every January, so they need to check for updated rates each year. The tipped employee rate also adjusts annually. This automatic annual adjustment means Vermont workers do not need to wait for legislative action to see their minimum wage increase when the cost of living rises.
**Vermont’s minimum wage is adjusted annually to be effective on January 1
Wage and Hour (Vermont Department of Labor)
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.
Wage and Hour (Vermont Department of Labor)
- Hourly
Effective 01/01/2023: $13.18 per hour worked / $6.59 for tipped employees
Other years
Every Vermont Minimum Wage year · Minimum Wage in every state