Starting January 1, 2027, Maine's minimum wage is $15.70 per hour, up from $15.10. The service employee (tip) wage rises to $7.85 per hour. Salaried workers must earn at least $905.79 a week, or $47,101.08 a year, to be exempt from overtime.
In This Guide
What changes on January 1, 2027
The Maine Department of Labor (MDOL) announced on September 18, 2026 that the state minimum wage will increase from $15.10 to $15.70 an hour on January 1, 2027. That is $0.60 an hour more. You can read the MDOL announcement for the full text.
Maine law requires the yearly adjustment. Since a 2016 referendum, MDOL has moved the rate each year by the cost-of-living index (CPI-W) for the Northeast region. Between August 2025 and August 2026 that index rose 4.1 percent.
| Item | 2026 | 2027 |
|---|---|---|
| Minimum wage | $15.10 | $15.70 |
| Service employee (tip) wage | $7.55 | $7.85 |
| Tips needed to count as a service employee | $191 per month | $199 per month |
Agricultural workers are also entitled to the state minimum wage under a law enacted in 2025.
Service employees and tips
The service employee minimum wage, often called the tip wage, rises from $7.55 to $7.85 an hour. Service employees must get a direct cash wage of at least $7.85 an hour from the employer.
The employer must be able to show that each service employee received at least $15.70 an hour once the direct wage and tips are added together at the end of the week. If they did not, the employer makes up the gap.
The tip level that makes someone a service employee also moves. The amount of tips needed to qualify as a service employee rises from $191 to $199 a month. An employee who does not qualify must be paid the full $15.70.
Exempt salary threshold
Maine sets its own floor for salaried overtime-exempt workers. The salary must exceed 3,000 times the state minimum wage or the federal annualized level, whichever is higher. Starting January 1, 2027, the threshold is $905.79 a week, or $47,101.08 a year.
Salary is only one test. MDOL points out that a worker can earn more than the threshold and still be owed overtime. The job duties have to qualify as well.
Who gets the raise
The minimum wage is a floor. An employee already paid more than $15.70 an hour does not have to get a raise. Hourly staff under that rate do, unless a specific exception covers them.
Pay plans that are not hourly need a look too. A non-exempt employee paid by salary, commission or piece rate must still receive at least the minimum wage for the hours worked. Check those employees against the new rate before January.
Pay periods that cross January 1
The new rate applies to hours worked on or after January 1, 2027. It does not depend on the pay date. If a pay period starts in December and ends in January, split the hours. Pay the December hours at the 2026 rate and the January hours at $15.70.
Paying the whole period at the new rate is also allowed, and it is simpler. Paying the January hours at the old rate is not.
Watch pay just above the minimum. When the floor moves to $15.70, a shift lead or a long-time employee may end up only a few cents ahead of a new hire. Keeping that gap is a business choice, not a legal one. It is easier to plan for in the fall than in January.
What to do before January 1
- Raise covered employees' hourly rates below $15.70 and every service employee cash wage below $7.85. Apply the new rates to hours worked on or after January 1, 2027.
- Review which employees you treat as service employees under the $199 monthly tip test.
- Check each exempt employee's salary against $905.79 a week. Raise the salary or start paying overtime.
- Post the new poster. MDOL offers the required minimum wage poster as a free download on its website.
- Budget for the raise, including overtime and employer payroll taxes.
For the rates in effect through December 31, 2026, see our Maine minimum wage 2026 guide. For withholding and filing rules, see the Maine payroll compliance guide.
Frequently Asked Questions
What is the Maine minimum wage in 2027?
Starting January 1, 2027, Maine's minimum wage is $15.70 per hour, up from $15.10.
What is the tipped minimum wage in Maine in 2027?
The service employee minimum wage rises from $7.55 to $7.85 per hour. The employer must show that direct wage plus tips reach at least $15.70 per hour at the end of the week.
How much in tips makes someone a service employee in Maine?
In 2027 the amount of tips needed to qualify as a service employee rises from $191 to $199 per month.
What is Maine's exempt salary threshold for 2027?
Starting January 1, 2027, salaried workers must earn at least $905.79 per week, or $47,101.08 per year, to be exempt from overtime. Job duties must also qualify.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of October 2026 and may not reflect recent changes in federal or Maine state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Maine law before making payroll or compliance decisions for your business.