Here’s How Much Maine’s Minimum Wage Will Increase to in 2023

One of the highest state minimum wage rates in the country is about to get an increase once the clock strikes 2023.

The Maine Department of Labor is reminding businesses that the state's minimum wage rate will increase to $13.80 an hour starting January 1. This jumps up from the current rate of $12.80.

The increase will keep Maine as one of the top states in the nation for minimum wage rates. And, depending on others' 2023 plans, Maine will also be just the 9th state to break the $13.00 barrier.

According to minimun-wage.org, Maine was ranked 10th in the nation in 2022 with its minimum wage of $12.80. That was good enough to be the third highest New England state, only behind Massachusetts and Connecticut. Massachusetts was the fourth highest in 2022, with a rate of $14.25 an hour, while Connecticut was fifth at $14.00 an hour. The District of Columbia had the highest rate this past year at $16.10 an hour.

The Maine Department of Labor also pointed out that 2023 will see the new service employee minimum wage, also known as "tip wage." Here's how the department explains this new wage:

...service employees must receive at least a direct cash wage of $6.90 per hour from the employer. The employer must be able to show that the employee receives at least the minimum wage of $13.80 per hour when the direct wage and tips are combined at the end of the week.

It will be interesting to see how much the new wages affect the Maine economy, especially the small businesses that have been struggling to find staff for the better part of two years. Of course, there will always be a tug-of-war between what small businesses can and can't afford, but ultimately, we hope this is a good change for all involved.

You can click here for all the 2023 labor changes in Maine.