On June 11, the Pennsylvania House of Representatives passed House Bill 1549, a measure proposing a significant, phased increase to the state’s minimum wage.
If enacted by the Senate, this would mark the first mandated change to Pennsylvania’s minimum wage since the federal minimum was raised to $7.25/hour in 2009.
The Bill
House Bill 1549 proposes a tiered, county-based approach to increasing the minimum wage, with changes taking effect beginning January 1, 2026:
- Philadelphia county’s minimum wage will immediately increase to $15/hour.
- In the next 16 most populous counties (Allegheny, Montgomery, Bucks, Delaware, Lancaster, Chester, York, Berks, Lehigh, Westmoreland, Luzerne, Northampton, Dauphin, Cumberland, Erie, and Lackawanna) and three smaller counties who have elected to be in this tier (Centre, Monroe, and Pike), there will be a progressive increase to the minimum wage: $12/hour starting in 2026, $13/hour in 2027, and $15/hour in 2028.
- For the remaining counties, the minimum wage will increase to $10/hour at the start of 2026 and increase by $1 each year until $12/hour is reached in 2028.
This bill also increases the tipped minimum wage, which is currently set at $2.83/hour. Employers will be required to pay tipped employees 60% of their respective county’s minimum wage for the applicable year.
Beginning in 2029, all counties will receive an annual cost-of-living adjustment based on the Consumer Price Index, as reported by the U.S. Department of Labor and the Bureau of Labor Statistics. This mechanism ensures future wage increases across Pennsylvania in accordance with inflation.
Key Takeaways for Employers
If enacted, House Bill 1549 will introduce legal, financial, and operational changes for employers statewide. Although the bill awaits Senate approval, employers are advised to begin preparing now. Taking a proactive approach can help mitigate compliance risks and avoid last-minute restructuring. Employers are encouraged to:
- Begin reviewing and planning adjustments to payroll systems to ensure compliance with the new wage requirements.
- Employers with tipped employees: begin planning for the new wage threshold.
- Begin to review and update employment agreements to reflect the new wage standards.
- Consult with legal counsel to ensure proper compliance with House Bill 1549.
We will be following House Bill 1549 to provide employers with necessary updates.
