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Montana minimum wage will increase in 2021

Posted at 1:30 PM, Oct 09, 2020
and last updated 2020-10-09 15:31:13-04

Gov. Steve Bullock announced on Friday that Montana’s minimum wage will increase from $8.65 per hour to $8.75 per hour beginning Jan. 1, 2021.

The minimum wage is determined by taking the current minimum wage of $8.65 and increasing it by the CPI-U increase from August of 2019 to August 2020. The CPI-U increased by 1.31% (unadjusted) over the year ending August 2020.

To keep the minimum wage at the same purchasing power as the prior year, the wage should increase by $0.11 per hour. However, since state statute requires the wage to rounded to the nearest 5 cents, the 2021 minimum wage rate will be $8.75.

In 2020, the District of Columbia and 29 U.S. states, including Montana, have minimum wage rates that exceed the federal rate of $7.25 per hour.

The state reports that an estimated 8,000 to 10,000 Montana workers, or around 2% of the workforce, received hourly wages less than $8.75 per hour in 2020.

At the beginning of 2020, the minimum wage in the state was raised from $8.50 to $8.65.

From the U.S. Department of Labor (website):