As we move into 2026, Maine employers need to be aware of the latest changes to minimum wage, tipped wage, and salary thresholds. These updates are essential for staying compliant with state law and ensuring employees are paid fairly. Below, we’ll walk through what’s changing on January 1, 2026, and then revisit the 2025 and 2024 limits for context.
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Beginning January 1, 2026, Maine’s minimum wage will rise from $14.65 to $15.10 per hour, reflecting a 3.1% increase in the cost of living. This adjustment is based on the Consumer Price Index for the Northeast Region, as required under state law.
This update also applies to agricultural workers in Maine, following a 2025 law signed by Governor Mills that extended the state minimum wage to cover this group.
In 2024, roughly 35,000 Maine workers earned less than $15 per hour. With the new increase, these employees—representing about 9% of Maine’s hourly workforce—will see their pay rise starting in 2026.
*Often, the cities of Portland and Rockland have their own, higher, minimum wages. At this time, those cities have not released their guidance on the 2026 minimum wage for work performed within city limits. Stay tuned for updates.*
The minimum wage for service employees (tipped workers) will increase to $7.55 per hour. Employers may take a tip credit of up to $7.55, provided that the combination of wages and tips brings the employee’s total hourly pay up to at least the state minimum wage of $15.10.
The monthly tip threshold to qualify as a tipped employee will also rise from $185 to $191 per month.
For employees to be considered exempt from overtime pay, they must earn above a certain salary threshold and meet specific job duties under state and federal law.
Starting January 1, 2026, Maine’s salary threshold will increase to $871.16 per week, or $45,300.32 per year.
Keep in mind: meeting the salary threshold alone does not guarantee an exemption from overtime. Employers must also evaluate whether the employee’s duties fall under the executive, administrative, or professional (EAP) exemption tests.
In 2025, Maine employers were required to adjust to several wage changes that took effect on January 1, 2025:
For reference, here were the limits in place in 2024:
|
2026 Threshold |
2025 Threshold |
|
|---|---|---|
| Maine Minimum Wage | $15.10/hour | $14.65/hour |
| Portland/Rockland Minimum Wage | TBD | $15.50/hour |
| Maine Tipped Wage | $7.55/hour | $7.33/hour |
| Portland/Rockland Tipped Wage | TBD | $7.75/hour |
| Maine Exempt Salary | $871.16/week | $845.21/week |
Under legislation passed in 2016, Maine’s minimum wage automatically adjusts for inflation each year based on the cost-of-living index. These updates always take effect on January 1st, and all employees must be paid at least the new rate starting with the first paycheck of the year.
To remain compliant in 2026 and beyond, employers should:
Maine law requires that minimum wage be adjusted annually for inflation and go into effect on January 1st of each year. Employers must begin paying the updated rate with the first paycheck in January, regardless of when the pay period started. This means if a pay period overlaps December and January, the hours worked in January must be paid at the new rate to stay compliant.
Yes. As of 2026, agricultural workers are officially covered by Maine’s state minimum wage. This change came after the Legislature passed a bill in 2025 extending minimum wage protections to farm workers. Employers in agriculture must now update payroll systems and ensure that all workers earn at least the state minimum wage of $15.10 per hour starting January 1, 2026.
Maine allows employers to pay a lower direct wage (the “tipped wage”) to service employees who earn tips, but only if those tips combined with wages bring the employee up to at least the full minimum wage. For 2026, the tipped wage is $7.55 per hour, and the monthly tip threshold is $191. Employers must carefully track tips and make up the difference if an employee’s wages and tips fall short of the $15.10 minimum.
Starting January 1, 2026, Maine’s salary threshold for exempt employees increases to $871.16 per week, or $45,300.32 per year. However, salary alone isn’t enough to classify someone as exempt from overtime. Employers must also confirm that the employee’s job duties fit into specific categories—executive, administrative, or professional (EAP). If either the salary level or duties test isn’t met, the employee must be treated as non-exempt and paid overtime for hours worked beyond 40 per week.
At this time, Portland and Rockland have not released their guidance on minimum wage within city limits. Over the past several years, these cities have had a higher minimum wage than the rest of the state. We can expect this to be true again for 2026. Stay tuned for updates.
The increase in Maine’s minimum wage, tipped wage, and salary threshold will take effect on January 1, 2026. Employers should start reviewing their payroll and salary structures now to avoid compliance issues, while employees should be aware of their rights under the new rules.
Need help navigating these changes? Our team is here to guide you through payroll updates, compliance, and employee management so you can focus on running your business.