The state of Vermont will increase its minimum wage to $8.06 per hour effective January 1, 2009. The service or tipped employee basic wage will also increase to $3.91 per hour. The state minimum wage is subject to cost-of-living adjustments each year based on the CPI.
Governor James H. Douglas announced recently that, according to Title 21 of the Vermont Statutes, the state of Vermont will increase the minimum wage to $8.06 per hour effective January 1, 2009.
The law requires an adjustment to the minimum wage be calculated each year based on the change in the federal Consumer Price Index, US city average, not seasonally adjusted, for the 12 months ending in August, and cannot increase more than five percent per year. The 5.4% increase in the CPI-U will result in an increase of at most five percent, or $0.38, for 2009.