What You Need to Know About the Minimum Wage in PA

Pennsylvania 2026–27 Budget Resources

Governor Shapiro’s 2026–27 proposed budget includes a long-awaited increase in the minimum wage to $15 per hour for non-tipped workers and $9 per hour for tipped workers, effective January 1, 2027. The administration estimates the change would generate $53.5 million in partial-year revenue and more than $80 million annually once fully implemented, with additional projected savings tied to reduced reliance on public assistance programs.

While the proposal would raise pay for hundreds of thousands of workers, it does not include automatic inflation adjustments, additional enforcement funding, or protections against benefits cliffs. As lawmakers consider next steps, key questions remain about long-term implementation, fiscal assumptions, and economic equity.

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