Alabama Minimum Wage 2026
$7.25
per hour (federal minimum) since July 24, 2009
Alabama has no state minimum wage law, so the federal minimum of $7.25 an hour applies to employers covered by the Fair Labor Standards Act. No increase to the Alabama minimum wage is scheduled for 2027.
Reviewed by Slava Akulov, CEO & Co-Founder at Jupid · Last updated: October 2026
Up to 40. Hours over 40 in a workweek go in the overtime field.
Paid at 1.5 times the rate ($10.88 an hour).
Weekly
$290
Monthly (average)
$1,257
Annual
$15,080
Gross pay before taxes. For take-home pay after federal, state and payroll taxes, use the Alabama hourly paycheck calculator.
Keep payroll costs in your books automatically
Paying hourly staff in Alabama? Jupid connects your bank and auto-categorizes wages and other expenses.
Alabama Minimum Wage at a Glance
2026 minimum wage
$7.25
Since July 24, 2009
Tipped cash wage
$2.13
Tip credit up to $5.12
Next change
None scheduled
No law scheduled
Overtime
Weekly
1.5 times the regular rate
Alabama has no state minimum wage law; employers covered by the FLSA must pay the federal $7.25.
Local Minimum Wages in Alabama
State law bars cities and counties from requiring any wage that state or federal law does not require.
Tipped Minimum Wage in Alabama
Employers in Alabama can pay tipped employees a cash wage of $2.13 an hour and count up to $5.12 an hour of tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference. The federal tip credit applies to employees who receive more than $30 a month in tips.
Cash wage
$2.13
Maximum tip credit
$5.12
Cash wage plus tips must reach
$7.25
Overtime Rules in Alabama
Alabama has no wage and hour law of its own; federal overtime after 40 hours in a workweek applies. Overtime is paid at 1.5 times the regular rate, so at the $7.25 minimum an overtime hour pays at least $10.88. To work out overtime on any hourly rate, use the overtime pay calculator.
Alabama Minimum Wage History
| Effective | Hourly rate |
|---|---|
| July 24, 2009 (current) | $7.25 |
| July 24, 2008 | $6.55 |
| July 24, 2007 | $5.85 |
| September 1, 1997 | $5.15 |
Alabama Minimum Wage in 2027
No increase to the Alabama minimum wage is scheduled for 2027. Alabama has no minimum wage law, so the floor changes only if Congress raises the federal rate.
Alabama Minimum Wage FAQ
More Pay Tools for Alabama
Alabama Hourly Paycheck Calculator
Take-home pay for hourly work, with overtime and taxes.
Alabama Paycheck Calculator
Salary take-home pay after federal and state taxes.
Overtime Pay Calculator
Time-and-a-half and double-time pay for any rate.
Employee Cost Calculator
What an hourly hire costs with payroll taxes added.
Minimum Wage in Other States
State minimum wages range from the federal $7.25 to $18.40 an hour in 2026. Pick a state to see its rate, tipped wage and 2027 change.
Official References
- Alabama Department of Labor (now Department of Workforce), Wage and Hour Info
- U.S. DOL, State Minimum Wage Laws (updated July 1, 2026)
- Code of Alabama 25-7-41 (Alabama Legislature)
- Code of Alabama 25-7-45 (Alabama Legislature)
- U.S. DOL, Minimum Wages for Tipped Employees (July 1, 2026)
- U.S. DOL, History of Federal Minimum Wage Rates
Rates verified against the sources above on October 30, 2026. The calculator shows gross pay only. Industry rates, exemptions and local ordinances can change during the year; check the agency page before setting pay. This page is general information, not legal advice.
Let Jupid handle the books and taxes for you
- Transactions categorized and books kept clean — automatically
- Write-offs and deductions found year-round, not just in April
- Quarterly tax estimates and reminders, so nothing surprises you
Set up in minutes. Cancel anytime.
Let Jupid Handle the Books for Your Alabama Business
Jupid connects your bank, categorizes wages and every other expense with 95.9% accuracy, and answers bookkeeping questions in WhatsApp or iMessage.