Current minimum wage in Alabama
Alabama has no state minimum wage law, so the federal minimum of $7.25 an hour applies to most jobs. A 2016 state law also bars cities and counties from setting their own minimum wage, so the rate is the same in Birmingham, Mobile and everywhere else in the state.
The rate rose from $6.55 (effective July 24, 2008) to $7.25 on July 24, 2009, an increase of $0.70 an hour or $1,456 a year for a full-time worker.
Next scheduled change
No increase is scheduled; the rate would change only if Congress raises the federal minimum wage.
Tipped minimum wage
Employers may pay tipped employees a cash wage of $2.13 an hour and count tips toward the rest, as long as total pay reaches $7.25 an hour. The federal tipped cash wage is $2.13. Employers may pay tipped workers $2.13 an hour in cash if tips bring total pay to at least $7.25; otherwise the employer must make up the difference.
What minimum wage pays in Alabama
| Hours per week | Weekly pay | Yearly pay |
|---|---|---|
| 20 hours | $145.00 | $7,540 |
| 25 hours | $181.25 | $9,425 |
| 30 hours | $217.50 | $11,310 |
| 35 hours | $253.75 | $13,195 |
| 40 hours | $290.00 | $15,080 |
After federal and Alabama taxes, a full-time minimum wage worker who files single keeps about $13,437 a year, or $517 per biweekly check. Run your own numbers with the Alabama paycheck calculator or see the full breakdown for $8 an hour.
Overtime rules
Follows the federal 40-hour weekly overtime rule.
City and county minimum wages
Local minimum wages are not allowed.
Exceptions and special rates
Under federal law, employers may pay workers under 20 a youth wage of $4.25 an hour during their first 90 days on the job.
How Alabama compares
Alabama ranks #32 of 51 for its minimum wage, tied with 19 other states at the same rate. The federal minimum wage is $7.25 an hour.
Frequently asked questions
What is the minimum wage in Alabama in 2026?
Alabama uses the federal minimum wage of $7.25 an hour for most workers.
What is the tipped minimum wage in Alabama?
Employers in Alabama may pay tipped workers a cash wage of $2.13 an hour, as long as tips bring total pay to at least $7.25. Employers may pay tipped workers $2.13 an hour in cash if tips bring total pay to at least $7.25; otherwise the employer must make up the difference.
When does the Alabama minimum wage go up next?
No increase is scheduled; the rate would change only if Congress raises the federal minimum wage.
How much is minimum wage in Alabama per year?
At $7.25 an hour, a 40-hour week pays $290 and a full year pays $15,080 before taxes. A single filer keeps about $13,437 after federal and Alabama taxes.
How does overtime work in Alabama?
Follows the federal 40-hour weekly overtime rule.