Tuesday, February 26, 2008

Montana’s Minimum Wage has increased in 2008

The minimum wage in Montana increased by 11 cents, from $6.15 to $6.25 per hour effective January 1, 2008

Under Initiative 151, adjustments are required to the minimum wage to be calculated before September 30 of each year based upon any increase in the U.S. City Average CPI for All Urban Consumers for All Items from August of the preceding year to August of the year in which the calculation is made. Based on an increase in the Consumer Price Index (CPI) of 1.97% from August 2006 to August 2007, the calculation used for determining the minimum wage for 2008 is $6.15 X .0197 -- $0.1211, rounded to $0.10.

Tipped employees must be paid the full minimum wage of $6.25 per hour in Montana. Businesses with revenues less than $110,000 per year in sales can still pay employees $4.00 per hour.

On July 24, 2008 the federal minimum wage will increase by 70 cents from $5.85 to $6.55 per hour, witch is higher than 2008 Montana minimum wage of $6.25 so the state minimum wage will also increase to $6.55 per hour then.

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