Pennsylvania Minimum Wage Calculator

💡 Pennsylvania Wage Law Essentials

• Standard Minimum Rate: Under the Pennsylvania Minimum Wage Act (43 P.S. § 333.104), the state minimum wage matches the federal baseline of $7.25/hour. Municipalities (like Philadelphia and Pittsburgh) are preempted from enacting higher local wages.
• Tipped Minimum Cash Wage: Under PA state law, employers may pay a direct cash wage of $2.83/hour (higher than the federal $2.13 floor) and claim a maximum tip credit of $4.42/hour ($7.25 - $2.83).
• $135/Month Tipped Threshold: Under PA DLI regulations, workers must earn at least $135/month in tips to qualify for the tip credit. If this threshold is not met, the employer must pay the full $7.25/hr in direct cash wages.
• Tip Shortfall Guarantee: If direct cash pay ($2.83/hr) plus employee tips average less than $7.25/hr across the workweek, the employer must fund the entire shortfall.
• Student-Learner Rate: Bona fide working students may be paid 85% of the minimum wage ($6.16/hour) if the employer holds an authorized certificate from the Department of Labor & Industry.
• Overtime Pay: Non-exempt hours exceeding 40 in a workweek must be paid at 1.5× the base minimum wage. For tipped employees, the direct cash overtime rate is $(1.5 \times \text{Base Wage}) - \text{Tip Credit} = (1.5 \times \$7.25) - \$4.42 = \$10.875 - \$4.42 = \$6.455 \approx \$6.46/\text{hour}$.