Minimum Wage in Alabama (AL)
The minimum wage in Alabama is $7.25 per hour , effective July 24, 2009. This follows the federal minimum wage of $7.25. The tipped minimum wage is $2.13 per hour. Employers may pay tipped employees $2.13/hr in cash wages if tips bring total compensation to at least the minimum wage. Alabama has no state minimum wage law. The federal minimum wage of $7.25/hr applies.
How Alabama Compares to Other States
Below is a comparison of Alabama with five states that have similar minimum wage rates. This comparison helps illustrate where Alabama stands nationally.
| State | Minimum Wage | Tipped Wage | Annual Full-Time |
|---|---|---|---|
| Alabama (AL) | $7.25/hr | $2.13/hr | $15,080 |
| Georgia (GA) | $7.25/hr | $2.13/hr | $15,080 |
| Idaho (ID) | $7.25/hr | $3.35/hr | $15,080 |
| Indiana (IN) | $7.25/hr | $2.13/hr | $15,080 |
| Iowa (IA) | $7.25/hr | $4.35/hr | $15,080 |
| Kansas (KS) | $7.25/hr | $2.13/hr | $15,080 |
Frequently Asked Questions About Alabama Minimum Wage
What is the minimum wage in Alabama in 2026?
The minimum wage in Alabama is $7.25 per hour as of July 24, 2009. This is the federal minimum wage rate. A full-time worker at this rate earns approximately $15,080 per year before taxes.
What is the tipped minimum wage in Alabama?
The tipped minimum wage in Alabama is $2.13 per hour. Employers can use a tip credit of $5.12/hr, paying tipped employees a cash wage of $2.13/hr, as long as tips bring total compensation to at least $7.25/hr.
How much does a minimum wage worker earn per year in Alabama?
A full-time minimum wage worker in Alabama (40 hours/week, 52 weeks/year) earns approximately $15,080 per year before taxes. The federal minimum wage yields $15,080/year.
Find Your Exact Minimum Wage
Use our minimum wage lookup tool to find the exact rate for your specific city in Alabama, or browse all 50 states to compare minimum wages across the country. Remember: the highest applicable rate (federal, state, or local) always applies.