Missouri minimum wage is a topic that matters to thousands of workers, families, and businesses across the state. With wages set to increase again in 2025, it’s vital for everyone — employees, employers, and job seekers — to have the latest, most accurate information on what these changes mean and how they compare nationally.
Missouri’s Minimum Wage in 2025
On January 1, 2025, the minimum wage for non-exempt workers in Missouri rose to $13.75 per hour. This major step reflects a significant increase from recent years and places Missouri among the states with the highest minimum wages in the Midwest. The minimum wage applies to most employees in the state, though there are notable exemptions and distinctions for tipped workers and small businesses.
How Minimum Wage Is Set in Missouri
Missouri’s minimum wage isn’t static; it has been shaped by both state legislation and voter-approved measures. The 2025 increase was a result of Proposition A, passed in November 2024, which amends Chapter 290 of the Missouri statutes. This law not only increased the wage in 2025 but also sets the stage for further growth — beginning January 1, 2026, the rate is set to rise to $15.00 per hour. After 2026, automatic adjustments based on the Consumer Price Index (CPI) will ensure that the minimum wage reflects the economy’s cost-of-living changes.
Historical Growth of Missouri Minimum Wage
Here’s a quick timeline of Missouri’s recent minimum wage journey:
| Year | Minimum Wage |
|---|---|
| 2015 | $7.65 |
| 2018 | $8.60 |
| 2021 | $10.30 |
| 2023 | $12.00 |
| 2024 | $12.30 |
| 2025 | $13.75 |
| 2026 | $15.00 |
Missouri’s steady increases—driven by citizen advocacy and legislative action—reflect a strong commitment to supporting low-income workers with livable wages.
Comparison: Missouri vs Federal and Neighboring States
As of 2025, Missouri’s minimum wage is $6.50 higher than the federal minimum wage of $7.25. Missouri also outpaces many neighboring states. For example, Arkansas stands at $11.00, Nebraska at $13.50, and Illinois at $15.00. These differences can influence where workers seek jobs and how businesses set their pay.
Here’s a comparison with some nearby states:
| State | Minimum Wage (2025) |
|---|---|
| Missouri | $13.75 |
| Arkansas | $11.00 |
| Nebraska | $13.50 |
| Illinois | $15.00 |
| Kansas | $7.25 |
| Iowa | $7.25 |
Who Is Covered and Who Is Exempt?
- Covered Workers: Most hourly, non-exempt employees working for businesses with more than $500,000 in annual gross sales.
- Tipped Employees: Must earn at least 50% of the state’s minimum wage directly from the employer; in 2025 that’s $6.88 per hour. If wages plus tips don’t reach $13.75 per hour, employers must make up the difference.
- Exemptions: Small retail or service businesses (less than $500,000 in annual revenue), certain agricultural workers, and a few other specialized job categories.
Impact on Workers and Employers
The recent increases have major implications for both employees and employers.
- Workers: Around 677,000 Missourians, including many families, will see a direct benefit from the latest increase. The majority of these workers are women and those from low-income households, helping to address wage gaps and reduce poverty.
- Employers: Companies must adjust payroll for compliance. While some businesses face higher labor costs, the increase can also drive higher worker morale, productivity, and consumer spending within local economies.
Missouri Law: No Local Minimum Wage Variation
As of 2025, local governments in Missouri cannot set their own minimum wage rates. All cities and counties must follow the state minimum wage law, ensuring uniformity for workers and employers statewide.
Upcoming Changes and Future Outlook
On January 1, 2026, Missouri’s minimum wage will jump once more to $15.00 per hour. After this, annual increases tied to inflation (the CPI) will help the wage keep pace with the cost of living, offering a degree of stability and predictability for both employees and businesses.
Benefits of New Minimum Wage Policy
- Provides a more livable income for low-wage workers
- Contributes to reducing poverty and income inequality
- Encourages spending in local communities
- May reduce employee turnover and improve productivity
- Sets an example for other states in the Midwest
Potential Challenges and Considerations
- Small businesses may find compliance challenging, especially in low-margin sectors
- Businesses with fewer than $500,000 in annual sales are exempt, possibly limiting the law’s reach
- Possible impact on employment costs in industries heavily reliant on entry-level labor
Quick Facts Table
FAQs about Missouri Minimum Wage
Q1: What is the 2025 minimum wage in Missouri?
A1: The minimum wage in Missouri for 2025 is $13.75 per hour for most non-exempt employees.
Q2: Will the minimum wage increase in Missouri after 2025?
A2: Yes, it will rise to $15.00 per hour starting January 1, 2026, and will be adjusted annually based on inflation.
Q3: Does the minimum wage apply to tipped workers in Missouri?
A3: Yes, but tipped employees receive at least $6.88 per hour in 2025, plus tips. If their total earnings fall short of $13.75 per hour, the employer must make up the difference.
Q4: Are small businesses required to pay the state minimum wage?
A4: Not all. Retail or service businesses with less than $500,000 in gross annual sales are exempt from the state minimum wage law.
Q5: Who benefits most from the recent minimum wage hikes in Missouri?
A5: Low-income workers, women, and families living near or below the poverty line benefit the most from wage increases.