Pennsylvania Minimum Wage 2026: $7.25, Tipped Pay, and Philadelphia and Pittsburgh

Pennsylvania’s minimum wage in 2026 is $7.25 an hour, the same as the federal minimum. State law ties Pennsylvania’s rate to the federal one, so it only moves when Congress or the General Assembly acts [1]. In March 2026 the state House passed a bill (HB 2189) to raise it; as of October 27, 2026, it had not become law [8].

Tipped workers

An employer can count part of a tipped worker’s tips toward the minimum wage. That tip credit comes with conditions under Pennsylvania’s rules, in effect since August 5, 2022 [3]:

• Cash wage of at least $2.83 an hour. Tips plus cash wage must reach $7.25 for every hour. If they fall short, the employer pays the difference.
• At least $135 a month in tips. Below that, the employer can’t take a tip credit.
• The 80/20 rule. A tip-credited worker can’t spend more than 20% of weekly hours on work that doesn’t bring in tips. Time beyond that must be paid at the full $7.25.
• Card fees stay with the employer. Employers can’t deduct credit card processing fees from tips.
• Tip pools. If anyone in the pool is paid the tipped wage, only regularly tipped workers can share it. Managers and supervisors can’t take from the pool.

What Philadelphia and Pittsburgh can’t do

Pennsylvania’s Minimum Wage Act says it “shall preempt and supersede any local ordinance or rule concerning the subject matter of this act” [1]. In practice, neither Philadelphia nor Pittsburgh can require private businesses in general to pay more than $7.25.

What they can do

Cities still have a few levers:

• Pay for city contractors. Philadelphia sets a minimum wage for businesses that hold city contracts, leases, concessions, franchises and financial aid, and their subcontractors. Since July 1, 2026, it’s $17.63 an hour for new and renewed agreements [4].
• Paid sick leave in Philadelphia. Workers earn at least 1 hour of sick time for every 40 hours worked, up to 40 hours a year. Employers with 10 or more employees must pay for it; smaller employers must give it unpaid. From July 1, 2026 to June 30, 2027, employers with 10+ employees must pay tipped workers $17.88 for each hour of paid sick time [5].
• Paid sick leave in Pittsburgh. Since January 1, 2026, covered workers earn at least 1 hour for every 30 hours worked. Employees of employers with 15 or more workers can earn at least 72 hours a year; smaller employers have a lower cap [6][7].

Who isn’t covered

Some jobs have exceptions, and the state can license employers to pay students and learners less under special certificates (never less than 85% of the minimum) [1]. If you’re unsure whether your job is covered, ask the Department of Labor & Industry.