Pennsylvania tipped minimum wage 2026
The Pennsylvania tipped cash wage is $2.83 per hour. Employers may take a tip credit of up to $4.42 per hour, provided the worker's cash wage plus tips reaches the state minimum of $7.25 per hour for every workweek. [DOL Tipped][PA labor dept.]
Cash wage and tip credit
When tips fall short
If a worker's cash wage plus reported tips do not average to the Pennsylvania minimum of $7.25 per hour over a workweek, the employer must pay the shortfall. The Tip Credit Checker tool runs the math at /tools/tip-credit. Under the 2021 DOL final rule, time spent on non-tip-producing work above 20 percent of the shift (or 30 continuous minutes) must be paid at the full minimum, not the tip-credited rate. [DOL FS-15]
Background
43 P.S. section 333.104 mirrors the FLSA rate of $7.25. The 2022 PA tipped-employee regulation raised the tipped threshold from $30 to $135 per month in tips and tightened 80/20/30 enforcement. Senate Bill 12 (2025 session) to raise the rate remains in committee.