Federal Minimum Wage History (1938 to 2026)
The US federal minimum wage has been $7.25 an hour since 24 July 2009, the longest stretch without an increase since the minimum wage began at 25 cents in 1938. This page lists every statutory rate and its effective date, straight from the Department of Labor, and shows the full-time annual equivalent (2,080 hours a year) for each. Because the federal rate is a fixed dollar amount that only Congress can change, it is not indexed to inflation, so its buying power falls between increases. Use the calculator below to work out gross pay at the minimum wage (or any hourly rate) for the hours you work. Many states and cities set a higher minimum; where they do, the higher rate applies.
Current federal minimum wage: $7.25 per hour (since July 2009). Full time that is $15,080.00 a year before tax. The rate has ranged from $0.25 in 1938 to $7.25 today.
Every federal minimum wage rate, 1938 to 2026
Nonfarm rate and effective date from the US Department of Labor. The annual column is the full-time equivalent at 2,080 hours a year.
| Effective | Hourly rate | Full-time annual |
|---|---|---|
| Oct 1938 | $0.25 | $520.00 |
| Oct 1939 | $0.30 | $624.00 |
| Oct 1945 | $0.40 | $832.00 |
| Jan 1950 | $0.75 | $1,560.00 |
| Mar 1956 | $1.00 | $2,080.00 |
| Sep 1961 | $1.15 | $2,392.00 |
| Sep 1963 | $1.25 | $2,600.00 |
| Feb 1967 | $1.40 | $2,912.00 |
| Feb 1968 | $1.60 | $3,328.00 |
| May 1974 | $2.00 | $4,160.00 |
| Jan 1975 | $2.10 | $4,368.00 |
| Jan 1976 | $2.30 | $4,784.00 |
| Jan 1978 | $2.65 | $5,512.00 |
| Jan 1979 | $2.90 | $6,032.00 |
| Jan 1980 | $3.10 | $6,448.00 |
| Jan 1981 | $3.35 | $6,968.00 |
| Apr 1990 | $3.80 | $7,904.00 |
| Apr 1991 | $4.25 | $8,840.00 |
| Oct 1996 | $4.75 | $9,880.00 |
| Sep 1997 | $5.15 | $10,712.00 |
| Jul 2007 | $5.85 | $12,168.00 |
| Jul 2008 | $6.55 | $13,624.00 |
| Jul 2009 | $7.25 | $15,080.00 |
Effective dates are the month each rate took effect per the Department of Labor. The rate shown is the standard nonfarm minimum. During 1961 to 1978 some newly-covered industries phased in on a separate schedule; the standard rate is listed here.
Why the number that matters is often not $7.25
The federal $7.25 is a floor, not the going rate. As of 2026 the great majority of the US workforce lives in a state or city whose own minimum wage is higher, and a tight labour market has pushed typical entry-level pay well above the federal figure in most of the country. So for most workers the binding number is their state or local minimum, not the federal one. The federal rate still matters in the roughly twenty states that have not set their own higher minimum, where $7.25 remains the law.
The other thing the nominal table hides is inflation. Because $7.25 has not moved since 2009, each year of rising prices quietly cuts what it buys: in real terms the federal minimum in 2026 is worth far less than it was in 2009, and less than its inflation-adjusted peak in 1968. That erosion, not any formal cut, is why the federal minimum wage debate keeps returning. This page deliberately shows nominal (actual-dollar) rates so the statutory history is exact; comparing purchasing power across decades needs a separate inflation adjustment.
Federal minimum wage: frequently asked questions
What is the federal minimum wage in 2026?
The federal minimum wage is $7.25 per hour and has been since 24 July 2009. That is a full-time (40 hours a week, 2,080 hours a year) gross income of about $15,080 a year before tax. Many states and cities set a higher minimum; where a state or local rate is higher, employers must pay the higher of the two. The $7.25 figure is the floor set by the federal Fair Labor Standards Act.
When was the last federal minimum wage increase?
The last increase took effect on 24 July 2009, the final step of the 2007 amendments that raised the wage from $5.85 (2007) to $6.55 (2008) to $7.25 (2009). The stretch since then is the longest period without a federal increase since the minimum wage was created in 1938. Any change requires an act of Congress; the federal rate is not automatically indexed to inflation.
What was the first federal minimum wage?
The Fair Labor Standards Act of 1938 set the first federal minimum wage at $0.25 (25 cents) an hour, effective October 1938. It rose to $0.30 in 1939 and $0.40 by 1945 under the original act's schedule. Every rate since has been set by later amendments to the Act.
Does the federal minimum wage keep up with inflation?
No. The federal minimum is a fixed dollar amount that changes only when Congress passes an increase, so its purchasing power erodes between increases. Because it has been $7.25 since 2009, its real (inflation-adjusted) value in 2026 is well below its 2009 level and below its historic peak in the late 1960s. This page shows the nominal (actual-dollar) rates; it does not adjust for inflation.
What is the tipped minimum wage?
Under federal law an employer may pay a tipped employee a cash wage of as little as $2.13 an hour, provided tips bring the employee up to at least the full $7.25 minimum. If they do not, the employer must make up the difference. This tip credit was set by the 1996 amendments. Many states require a higher cash wage for tipped workers.
Sources
- Rates and effective dates: US Department of Labor, Wage and Hour Division, History of Federal Minimum Wage Rates Under the Fair Labor Standards Act.
- Series cross-check: Federal Reserve Bank of St. Louis (FRED), Federal Minimum Wage Rate for Nonfarm Workers (FEDMINNFRWG).
- Current rate and tipped-wage rules: US Department of Labor, Minimum Wage.
Reviewed by the CalculatorHub team, edited by James Graham, 28 July 2026. See our methodology. Nominal rates, not inflation-adjusted. State and local minimums may be higher.