Virginia Minimum Wage to Increase to $12.77 Starting January 2026

Beginning January 1, 2026, Virginia’s minimum wage will rise to $12.77 per hour, the Virginia Department of Labor and Industry (DOLI) announced. The change follows a scheduled cost-of-living adjustment based on state law, which ties minimum wage increases to the Consumer Price Index (CPI).

The current minimum wage in Virginia is $12.41. The new rate reflects a 2.9% CPI increase as reported by the U.S. Department of Labor’s Bureau of Labor Statistics. According to DOLI, the new rate is calculated by adding the product of that increase to the current wage: $12.41 + ($12.41 × 0.029) = $12.77.

“Virginia’s Minimum Wage Act allows for gradual adjustment of the minimum wage rate in response to economic conditions,” said DOLI Commissioner Gary G. Pan. “The new minimum wage will ensure the Commonwealth remains the leading destination for businesses and job seekers alike.”

The adjustment mechanism—mandated under state law—requires the DOLI Commissioner to recalculate the minimum wage annually. Each year’s increase is tied directly to the national CPI for all items and urban consumers (CPI-U), ensuring the minimum wage keeps pace with inflation and cost-of-living changes.

The $12.77 hourly rate will be in effect from January 1, 2026, through January 1, 2027, when the next CPI-based update will occur.

The minimum wage law applies to most workers in Virginia, including full-time, part-time, and temporary employees. However, certain workers, such as those in specific seasonal or job-specific categories, may be exempt. Employers are encouraged to review the full list of exemptions at www.doli.virginia.gov.

Tipped employees are governed by a separate rule under the federal Fair Labor Standards Act (FLSA). While employers may pay tipped workers as little as $2.13 per hour in direct wages, the total of wages and tips combined must equal or exceed the state’s minimum wage.

The Department has sent formal notification to business groups throughout the Commonwealth to alert them to the upcoming change.

For more information about Virginia’s wage laws and exemptions, or to access the official notification letter to employers, visit www.doli.virginia.gov.