Current Minimum Wage in Alabama
Alabama does not have a state minimum wage law. The federal minimum wage of $7.25/hr applies to covered workers under the Fair Labor Standards Act (FLSA).
Wage Breakdown
| Pay Period | Gross Pay | Hours |
|---|---|---|
| Hourly | $7.25 | 1 |
| Daily (8 hours) | $58 | 8 |
| Weekly | $290 | 40 |
| Biweekly | $580 | 80 |
| Monthly | $1,257 | ~173 |
| Annual | $15,080 | 2,080 |
Tipped Employee Wage
Tipped workers in Alabama can be paid a cash wage of $2.13/hr, with the expectation that tips make up the difference to the full $7.25/hr minimum. If tips don't bring total compensation to the minimum wage, the employer must make up the difference.
Scheduled Increases
No scheduled increases. Alabama has no state minimum wage law; federal rate applies.
Living Wage vs. Minimum Wage
Federal Poverty Line (single)
$15,060/year
Minimum wage is $20 above poverty line
Estimated Living Wage (AL)
~$14.98/hr
Based on cost of living index (88.1)
Cost of Living Context
Alabama's cost of living index is 88.1 (national average = 100). This means living in Alabama is 11.9% cheaper than the national average. The median hourly wage in Alabama is $17.96/hr, which is 148% above the minimum wage.
Key Facts
Alabama has no state minimum wage law. The federal minimum wage of $7.25/hr applies to covered workers.
How This Compares
| Metric | AL | Federal | Highest (WA) |
|---|---|---|---|
| Minimum Wage | $7.25 | $7.25 | $16.66 |
| Tipped Wage | $2.13 | $2.13 | $16.66 |
| Annual (FT) | $15,080 | $15,080 | $34,653 |
Useful Resources
Alabama Average Salary
Median income and top employers in AL
Alabama Tax Rates
Income, sales & property tax in AL
Salary Calculator
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Paycheck Calculator
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