Personal Finance

What Is Minimum Wage?

Minimum wage is the lowest hourly pay that employers are legally required to pay covered workers. Many countries set a national minimum; in the United States there is a federal minimum, and many states and cities set higher rates, in which case the higher rate generally applies.

Annual Equivalent

Annual pay ≈ hourly minimum wage × 40 hours × 52 weeks (2,080 hours) for full-time work.

Tipped Workers

Some jurisdictions allow a lower cash wage for tipped employees if tips bring total pay up to the minimum.

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💵 Salary ↔ Hourly Wage Converter Convert annual salary to hourly, weekly, biweekly, and monthly pay, or vice versa. Calculate → 💰 Paycheck Calculator (2026) Estimate your take-home pay using official 2026 federal tax brackets and FICA rates. Calculate →

🔗 Related Terms

Hourly Wage Tip Credit Cost of Living Overtime Pay

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.