Alabama Minimum Wage 2026: $7.25/hr Calculator
Calculate weekly, monthly, and annual gross pay at Alabama's 2026 minimum wage. Includes tipped worker earnings.
The Alabama minimum wage calculator is a free, browser-based tool that converts Alabama's 2026 minimum wage of $7.25 per hour into weekly, monthly, and annual gross pay for hourly and tipped workers. Enter your hours and it returns all four figures instantly, with no sign-up and no data leaving your device.
How Alabama Minimum Wage Compares to the Federal Rate
Alabama's 2026 minimum wage of $7.25 per hour is equal to the $7.25 federal minimum. The federal minimum wage of $7.25 per hour has not changed since 2009, meaning workers in states like Alabama rely on state law for meaningful wage floors.
At $7.25/hr working full-time (40 hours/week, 52 weeks/year), an Alabama worker earns $15,080.00 gross annually. That equals $290.00 per week and roughly $1,256.67 per month.
These figures are gross (before taxes). Your take-home pay will be lower after federal income tax, Social Security (6.2%), and Medicare (1.45%) deductions. Use our Alabama Income Tax Calculator for a net-pay estimate.
Last updated: August 2026. Rates sourced from the Alabama Department of Labor and the U.S. Department of Labor Wage and Hour Division.
Tipped Workers in Alabama
The tipped minimum wage in Alabama is $2.13 per hour in 2026. Employers may pay tipped employees as little as $2.13/hr, but total compensation including tips must reach $7.25/hr. If tips fall short, the employer must make up the difference.
Tipped workers in Alabama are covered by the federal tip-credit rule, not a state one, and include restaurant servers, bartenders, valets, and other staff who regularly receive more than $30 a month in tips. Always check your pay stub to confirm your employer is topping you up to the full $7.25/hr.
Worked example: a server paid the $2.13 cash wage for a 30-hour week receives $63.90 in wages. To clear the $7.25 floor that week she needs $217.50 total, so tips must reach at least $153.60. If she only made $120 in tips, the employer owes the $33.60 difference.
Alabama Wage Increase Schedule
There is no scheduled increase. Alabama has no state minimum wage statute at all, so the rate is pinned to the federal floor and only moves when Congress raises it — which has not happened since 24 July 2009. Alabama also preempts local minimum wage ordinances under Act 2016-18, so no Alabama city can set a higher rate.
Employers must post the current Alabama minimum wage notice at their place of business. Violations can result in back-pay orders and civil penalties. Workers who believe they are being underpaid can file a complaint with the Alabama Department of Labor or the U.S. Department of Labor.
Bookmark this page — we update Alabama wage data each time the state announces a new rate, including CPI-indexed adjustments.
Overtime Pay at the Alabama Minimum Wage
Alabama has no state overtime law, so overtime comes from the federal FLSA: time-and-a-half for every hour over 40 in a single workweek. At the $7.25 minimum that is $10.88 per hour ($7.25 × 1.5 = $10.875, rounded up to the cent). A 50-hour week therefore pays $290.00 straight time plus $108.75 overtime, or $398.75 gross — not $362.50.
Two rules catch people out. Overtime is calculated per workweek, so 30 hours one week and 50 the next still earns 10 hours of overtime; the two weeks cannot be averaged. And for tipped staff the overtime rate is built on the full $7.25, not the $2.13 cash wage: the tipped overtime rate is $10.88 minus the $5.12 tip credit, or $5.75 per hour cash. Rules: U.S. Department of Labor — Overtime Pay.
Who Is Covered by the Alabama Minimum Wage in 2026?
Because Alabama has no state minimum wage statute, coverage comes entirely from the federal Fair Labor Standards Act (FLSA). Two coverage tests apply. Enterprise coverage reaches businesses with at least $500,000 in annual gross sales, plus hospitals, schools, and government agencies regardless of revenue. Individual coverage reaches employees whose work regularly involves interstate commerce — handling out-of-state orders, card payments, or shipments — even at a smaller employer. The FLSA also allows a youth wage of $4.25 per hour for workers under 20 during their first 90 consecutive calendar days, after which the full $7.25 applies. Exemptions cover most farm workers on small farms, outside sales staff, and bona fide executive, administrative, and professional employees. Details: U.S. Department of Labor, Wage and Hour Division — FLSA.