Quick answer: Virginia’s minimum wage is $12.77 per hour as of January 1, 2026. Under a law signed in April 2026, it rises to $13.75 on January 1, 2027 and $15.00 on January 1, 2028, and employers must pay the higher of the state or federal rate.
Virginia’s minimum wage went up on January 1, 2026, and new state law sets two more increases over the next two years. If you have hourly employees, here is what changed and what to do about it.
The schedule
| Effective date | Virginia minimum wage |
|---|---|
| January 1, 2026 | $12.77 per hour |
| January 1, 2027 | $13.75 per hour |
| January 1, 2028 | $15.00 per hour |
The increases to $13.75 and $15.00 were signed into law in April 2026. Virginia’s rate is well above the federal minimum of $7.25, and employers must pay whichever is higher.
Who it affects
- Hourly employees paid near the minimum, such as restaurant, retail, cleaning and landscaping staff
- Part time and seasonal workers
- Employees whose pay is tied to the minimum, even if they earn more today
Raising entry level pay often compresses the gap with more experienced staff. Many employers adjust other wages too, so plan for that in your budget.
Tipped employees
Restaurants and other businesses with tipped staff need to confirm that each employee’s cash wage plus tips meets the minimum, and that tips are tracked correctly in payroll. Tip reporting also matters for the new federal deduction for tips covered in our Schedule 1-A guide.
What to update before each increase
- Update pay rates in your payroll system before the first payroll of January
- Review every employee near the new minimum, not just those below it
- Update the required minimum wage poster
- Make sure pay stubs show hours, rate and deductions, as Virginia requires
- Recalculate your labor budget and pricing for the year ahead
Tip: Employer payroll taxes rise along with wages. Budget for Social Security, Medicare and unemployment tax on the higher pay, not just the raise itself.
Planning for $15
For many small businesses, the move to $15 in 2028 is the bigger change. Building it into this year’s budget and pricing now is easier than absorbing it all at once.
→Related guide1099-NEC Rules for Small Businesses: The $2,000 Threshold for 2026, Deadlines and How to FileIf you also pay contractors, this guide explains the new 1099-NEC threshold and filing deadlines.Virginia Minimum Wage FAQs
Is Virginia’s minimum wage $15 an hour?
Not yet. The rate is $12.77 in 2026 and $13.75 in 2027, and it reaches $15.00 on January 1, 2028.
Does Virginia require overtime pay?
Yes. Virginia follows the federal rule, so most hourly employees must be paid one and a half times their regular rate for hours over 40 in a workweek.
Can tipped employees in Virginia be paid less than minimum wage?
Employers may count tips toward the minimum, but each tipped employee’s cash wage plus tips must equal at least the Virginia minimum wage. If tips fall short, the employer must make up the difference.
How often must Virginia employers pay hourly workers?
Hourly employees must be paid at least every two weeks or twice a month. Salaried employees must be paid at least once a month.
What happens if an employer pays less than the minimum wage?
Employees can recover the unpaid wages, and Virginia law also allows additional damages and penalties. Fixing pay rates before the first January payroll avoids the problem.
Keep payroll compliant
Our payroll services update rates, taxes and filings for you. We work with restaurants, construction companies and other employers across Northern Virginia.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
