Virginia minimum wage workers are set to receive a higher legal pay floor beginning January 1, 2027, when the state rate increases to $13.75 per hour.
The change was confirmed in the October 27, 2026, update to Code of Virginia § 40.1-28.10, which sets the minimum wage schedule for covered employees.
The new rate represents an increase of 98 cents per hour from the current state rate of $12.77.
For a full-time employee working 40 hours per week, the increase would equal about $39.20 in additional gross pay per week before taxes and other deductions.
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When the Virginia minimum wage changes
The Virginia minimum wage will remain at $12.77 per hour through December 31, 2026.
The $13.75 rate takes effect on January 1, 2027, and remains scheduled to apply through December 31, 2027.
The law then sets another increase to $15 per hour beginning January 1, 2028.
Beginning in 2029, the state hourly minimum wage will be adjusted annually under a formula tied to changes in the Consumer Price Index for All Urban Consumers, commonly called CPI-U.
| Period | Minimum hourly rate |
|---|---|
| January 1, 2026, through December 31, 2026 | $12.77 |
| January 1, 2027, through December 31, 2027 | $13.75 |
| January 1, 2028, through December 31, 2028 | $15.00 |
| January 1, 2029, and later | Annual adjusted rate |
How much more workers could earn
The increase from $12.77 to $13.75 is a $0.98 hourly gain.
At 40 hours per week, that difference equals $39.20 in additional gross wages each week.
Over 52 weeks, the increase would amount to approximately $2,038.40 in additional gross pay for an employee who works full time at the minimum rate for the entire year.
Actual take-home pay will vary based on taxes, payroll deductions, unpaid time off, overtime, tips and the number of hours worked.
The state minimum wage is a legal floor, so employers may continue to pay higher rates based on job duties, experience, location, industry conditions or company policy.
Who must follow the new Virginia minimum wage
The updated law applies to employees covered by the Virginia Minimum Wage Act.
Virginia’s labor department says the state minimum wage generally applies to covered full-time, part-time and temporary workers, although state law contains exemptions for certain categories of employment.
Workers and employers should review the coverage rules before assuming that every job is subject to the same requirement.
The statute also includes specific treatment for certain employees enrolled in qualifying employer on-the-job or other training programs.
Questions about whether a particular job or worker is exempt can depend on the duties performed, the type of employer and the applicable state or federal rules.
What the increase means for employers
Employers with covered workers should prepare payroll systems for the $13.75 rate before the first pay period that includes work performed on or after January 1, 2027.
Businesses should also review offer letters, wage notices, scheduling systems, timekeeping records and internal pay scales that reference the current rate.
The effective date is January 1, 2027, rather than the date an employee receives a paycheck.
That distinction matters because payroll checks issued in January can include hours worked in December and hours worked after the new rate begins.
Employers should apply the legally required rate to the covered hours worked during each applicable period and maintain accurate wage and time records.
Businesses that already pay more than $13.75 per hour may not need to change the base rate for those employees, although compression between entry-level and more experienced workers could affect broader pay decisions.
Federal minimum wage remains lower
The federal minimum wage for covered nonexempt employees remains $7.25 per hour.
When both federal and state wage laws apply, workers are generally entitled to the higher applicable minimum wage.
As a result, the $13.75 state rate will control for covered employees in Virginia unless another applicable rule requires an even higher rate.
Some local wage rules, employment contracts or industry-specific requirements may provide additional protections, so the state rate is not necessarily the maximum an employee is entitled to receive.
What tipped workers should know
Tipped employees can be subject to special rules governing direct cash wages and tip credits.
Under federal guidance, an employer using a tip credit must ensure that the employee’s direct wages and qualifying tips together reach the applicable minimum wage.
Virginia workers who receive tips should review the state and federal requirements that apply to their position rather than relying only on the cash wage shown on a paycheck.
If total compensation does not meet the required minimum, the employer may have additional obligations under wage law.
Virginia minimum wage schedule continues after 2027
The 2027 increase is part of a longer wage schedule rather than a one-time change.
The law sets the hourly rate at $15 per hour beginning January 1, 2028.
After that scheduled increase, the state will use annual adjustments based on the percentage change in the CPI-U measure for the most recent calendar year available when the adjustment is calculated.
The law provides that an annual adjustment cannot be less than zero.
The Commissioner of Labor and Industry is required to establish the adjusted hourly rate by October 1 for the 12-month period beginning the following January 1.
That means the exact rate for 2029 and later years will depend on the required calculation and official announcement for each year.
What Virginia workers should do now
Employees should check their hourly rate and keep copies of pay statements as January 1, 2027, approaches.
Workers paid at or near the current state rate should confirm that the new rate is reflected for covered hours worked after the effective date.
Employees should also track hours, tips and deductions so they can compare total compensation with the legal minimum.
Anyone who believes an employer has failed to pay the required wage can contact the Virginia Department of Labor and Industry for information about wage-payment rights and enforcement options.
The wage increase does not automatically change overtime rules, paid leave policies, scheduling practices or other employment benefits.
Those issues are governed by separate laws, regulations, contracts and employer policies.
Key dates for Virginia workers and businesses
- December 31, 2026: The $12.77 hourly rate is scheduled to remain in effect through this date.
- January 1, 2027: The Virginia minimum wage rises to $13.75 per hour.
- January 1, 2028: The scheduled rate rises to $15 per hour.
- October 1, 2028: The commissioner is scheduled to establish the adjusted rate for the following year.
- January 1, 2029: Annual CPI-U-based adjustments begin after the scheduled 2028 rate.
Bottom line
The Virginia minimum wage will increase to $13.75 per hour on January 1, 2027.
The change raises the required hourly floor by 98 cents and is followed by a scheduled increase to $15 per hour on January 1, 2028.
Workers should review their pay after the effective date, while employers should update payroll and wage records before the new rate applies.
Frequently Asked Questions
When does Virginia’s minimum wage increase to $13.75?
The Virginia minimum wage is scheduled to increase to $13.75 per hour on January 1, 2027.
What is Virginia’s current minimum wage before the 2027 increase?
The state minimum wage is $12.77 per hour for the period running from January 1, 2026, through December 31, 2026.
Will Virginia’s minimum wage increase again after 2027?
Yes. The law schedules an increase to $15 per hour on January 1, 2028. Annual CPI-U-based adjustments are scheduled to begin in 2029.
Does the federal minimum wage replace Virginia’s rate?
No. The federal minimum wage is $7.25 per hour, but covered workers generally receive the higher applicable state or federal rate. In Virginia, the state rate is higher.
Does the increase apply to every worker in Virginia?
The rate applies to employees covered by the Virginia Minimum Wage Act. State law contains exemptions and special rules for certain categories of employment.
Fact-Checked: Verified against the October 27, 2026, Virginia Code update, Virginia Department of Labor and Industry guidance, and current U.S. Department of Labor minimum-wage information.
Disclaimer: This article provides general information and is not legal or payroll advice. Workers and employers should consult official Virginia guidance for questions about coverage, exemptions and compliance.
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