Missouri’s minimum wage continues to make headlines, especially as new statewide changes take effect. For workers and employers alike, understanding the rules and real-life impact of the Missouri minimum wage is essential. This article unpacks everything you need to know about the current rates, key updates for 2025 and beyond, who these changes affect, exemptions, and what this means for working Missourians.
Missouri Minimum Wage in 2025
As of January 1, 2025, the Missouri minimum wage is set at $13.75 per hour. This rate is significantly higher than the federal minimum wage, which remains at $7.25 per hour for most of the United States. Missouri’s proactive stance on raising the wage floor aims to help more working families achieve financial stability, addressing both inflation and living costs.
Major Changes: Recent Ballot and Legislation
Missouri’s latest wage hike didn’t come out of nowhere. In November 2024, voters overwhelmingly passed Proposition A, committing the state to a series of minimum wage increases and expanded worker protections. The recently signed House Bill 567 (HB 567) put these changes into law.
Key highlights include:
- $13.75 per hour minimum wage as of January 1, 2025
- $15.00 per hour minimum wage to be effective January 1, 2026
- Annual cost-of-living adjustments set to begin January 1, 2027, using the Consumer Price Index unless the federal minimum wage overtakes the state’s rate.
For context, as recently as 2018, the wage was just $7.85 per hour, increasing gradually through annual voter-backed initiatives.
Who Must Pay the Missouri Minimum Wage?
The law covers most employees in the state, but there are exceptions. Employers with gross annual revenues exceeding $500,000 are required to comply with the state minimum wage law.
Exemptions Include:
- Small businesses with annual gross income below $500,000
- Certain seasonal and casual labor positions
- Governmental entities and some public employers (with the new law, many public sector jobs are newly covered from August 2025).
- Some agricultural and farm workers
Tipped employees must be paid at least half of the state minimum wage directly in cash wages, with tips making up the rest. For 2025, this means tipped workers must receive at least $6.88 per hour, plus tips.
Paid Sick Leave: A New Right
Starting in May 2025, covered Missouri workers accrue paid sick time—one hour for every 30 hours worked. This major policy enhancement ensures workers don’t have to choose between their health and a day’s earnings.
Minimum Wage Progression Table
Here’s a quick look at Missouri’s recent and upcoming minimum wage rates:
| Year | Minimum Wage (per hr) | Notable Notes |
|---|---|---|
| 2023 | $12.00 | Indexed for inflation |
| 2024 | $12.30 | Indexed for inflation |
| 2025 | $13.75 | Prop A, larger increase |
| 2026 | $15.00 | Prop A, major milestone |
| 2027+ | Adjusted by CPI | Annual inflation adjustment |
Impact on Workers and Families
The minimum wage increase brings real improvements to thousands of families across the state. Nearly 1 in 4 Missouri workers—about 677,000 people—will see bigger paychecks due to this policy. Most minimum wage earners are adults, and many are supporting children or family members.
For a full-time worker earning $13.75 an hour in 2025, weekly pay reaches $550 before taxes. In 2026, at $15 per hour, this increases to $600 per week—helping to shrink the poverty gap and boost regional economies.
Missouri vs. Federal Minimum Wage
Missouri’s policy leaders deliberately set the state minimum significantly higher than the federal level of $7.25. Residents of Missouri, therefore, benefit from some of the strongest wage protections in the Midwest and nationwide.
If, at any point in the future, the federal minimum wage should exceed Missouri’s rate, state law automatically bumps up the Missouri minimum wage to match it.
What Employers Need to Know
Employers must update payroll systems and display current wage posters in the workplace (available in English and Spanish). Any failure to comply can lead to legal consequences and back pay obligations.
Small business owners, especially those with close-to-threshold revenue or relying heavily on tipped or seasonal labor, should consult labor counsel for compliance.
The Bigger Picture: Why It Matters
Missouri joins a growing group of states, along with Washington, California, and New York, that are setting new wage standards. These increases intend to reduce working poverty, narrow gender wage gaps (since most minimum wage workers are women), and ensure all jobs pay a living wage.
Key Points to Remember
- $13.75 per hour Missouri minimum wage effective January 2025
- Rises to $15.00 per hour in January 2026
- Tipped employees receive at least $6.88 per hour plus tips
- Paid sick leave accrual begins May 2025
- Small businesses, agricultural jobs, and some public employers are exempt
- Ongoing adjustments after 2027 will be based on inflation (Consumer Price Index)
- Missouri’s minimum wage law automatically aligns with the federal rate if the latter is ever higher
Frequently Asked Questions
1. What is the minimum wage in Missouri in 2025?
- The minimum wage in Missouri for 2025 is $13.75 per hour for most employees.
2. Who is exempt from the Missouri minimum wage law?
- Employers with less than $500,000 in gross annual receipts, some seasonal or casual workers, and certain public and agricultural jobs may be exempt.
3. When does Missouri’s minimum wage increase to $15 an hour?
- It will increase to $15.00 per hour starting January 1, 2026.
4. Are tipped workers covered by the same minimum wage?
- No, tipped employees must be paid at least 50% of the minimum wage ($6.88 in 2025), plus tips to reach the regular minimum wage level.
5. Will Missouri’s minimum wage keep increasing after 2026?
- Yes, starting in 2027, the minimum wage will adjust annually with inflation according to the Consumer Price Index.
Elizabeth Muenzen is an education writer and community researcher dedicated to covering school boards, local policy, and issues that impact students and families. With a strong focus on transparency and fact-based reporting, she breaks down complex topics into clear, accessible insights for parents, educators, and community members.