Starting January 1, 2025, Vermont’s minimum wage will rise to $14.01 per hour, up from $13.67. Tipped employees will also see an increase, with their minimum wage set at $7.01 per hour. Vermont law allows employers to pay tipped workers a lower cash wage as long as tips bring total earnings above the standard minimum wage.
Vermont adjusts its minimum wage annually based on the Consumer Price Index, capped at a 5% increase. These 2025 rates will remain in effect until the next adjustment, helping ensure wages keep pace with inflation.
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Vermont State Minimum Wage for 2025
Starting January 1, 2025, Vermont’s minimum wage will increase to $14.01 per hour from $13.67 per hour as announced by the Vermont Department of Labor. Similarly, tipped employees will also see a raise in their minimum wages from $6.84 to $7.01 per hour.
According to the state law, Vermont adjusts its minimum wages annually, including the tipped minimum wage. Employers are permitted to pay tipped employees a lower wage if their tips bring their total earnings above the standard minimum wage.
These rates are effective from January 1, 2025, and will continue to be adjusted annually in accordance with the Consumer Price Index or a maximum 5% increase, whichever is smaller.
Employees can contact the Department of Labor’s Wage and Hour Unit at Labor.Vermont.gov/Rights-and-Wages if they feel they are not being paid fairly.
Minimum Wages in Vermont Cities
Here is a table detailing the minimum wage and tipped minimum wage rates observed across all cities of Vermont.
City
Non-tipped Employees
Tipped Employees
Burlington
$14.01 per hour
$7.01 per hour
South Burlington
$14.01 per hour
$7.01 per hour
Rutland
$14.01 per hour
$7.01 per hour
Barre
$14.01 per hour
$7.01 per hour
Montpelier
$14.01 per hour
$7.01 per hour
Winooski
$14.01 per hour
$7.01 per hour
St. Albans
$14.01 per hour
$7.01 per hour
Newport
$14.01 per hour
$7.01 per hour
Vergennes
$14.01 per hour
$7.01 per hour
St. Johnsbury
$14.01 per hour
$7.01 per hour
Springfield
$14.01 per hour
$7.01 per hour
Middlebury
$14.01 per hour
$7.01 per hour
Battleboro
$14.01 per hour
$7.01 per hour
Williston
$14.01 per hour
$7.01 per hour
Colchester
$14.01 per hour
$7.01 per hour
Essex Junction
$14.01 per hour
$7.01 per hour
Hartford
$14.01 per hour
$7.01 per hour
Bennington
$14.01 per hour
$7.01 per hour
Rockingham
$14.01 per hour
$7.01 per hour
Milton
$14.01 per hour
$7.01 per hour
Manchester
$14.01 per hour
$7.0114.01 per hour
Northfield
$13.67 per hour
$7.01 per hour
Morristown
$14.01 per hour
$7.01 per hour
Shelburne
$14.01 per hour
$7.0114.01 per hour
Waterbury
$13.67 per hour
$7.01 per hour
Castleton
$14.01 per hour
$7.01 per hour
Fairfax
$14.01 per hour
$7.01 per hour
Lyndon
$14.01 per hour
$7.01 per hour
Stowe
$14.01 per hour
$7.01 per hour
Randolph
$14.01per hour
$7.01 per hour
Richmond
$14.01 per hour
$7.01 per hour
Northfield
$14.01 per hour
$7.01 per hour
Threshold For Exempt Employees
The salaries of Vermont’s elected officers, including the Governor and other top officials, are defined in 32 VSA § 1003(a), and any adjustments require legislative approval. Meanwhile, the base salaries for agency secretaries, commissioners, and some organization heads are defined in 32 VSA § 1003(b). The maximum salary range for these positions is 50% above the base pay. Furthermore, salary adjustments cannot exceed the average total range and require the Governor’s approval for any salary increase or bonus.
Other exempt employees, such as deputies and executive assistants, are not covered by the state’s minimum wage pay plan. They need pre-approval for hiring ranges and any salary increases, with final decisions made by the Secretary of Administration. Lastly, some exempt employees are covered by unique pay plans as defined in 32 VSA § 1020(c), with established salary ranges and guidelines.
Historical Data of Vermont Minimum Wages
The federal minimum wage in Vermont was first set at $0.25 per hour, which came into effect on October 24, 1938. Today, the federal minimum wage is $7.25 per hour. Vermont introduced its own minimum wage in 1959, owing to Act 32, and paid employees $1.00 per hour.
From 1959 to 2016, the state’s minimum wage rates increased by an average of 4.6% per year. However, when adjusted for inflation using the Consumer Price Index (CPI), the wage rates increased by an average of 0.8% per year.
Here is a table of all the historical changes in the Minimum Wage Rates of Vermont:
The current federal and state laws regarding minimum wage rates and overtime pay are quite complex. They also list various exemptions and conditions based on an employee’s work or their category classification. In a dispute regarding minimum wages between state and federal laws, the higher standard prevails.
Current Minimum Wage Law and Exemptions:
The federal minimum wage, as defined under the Fair Labor Standards Act, is $7.25 per hour. Meanwhile, Vermont’s minimum wage is $14.01 per hour. Generally, if an employee is exempt from Vermont’s minimum wage, they are paid as per federal laws. The table below details various exemptions and the applicable minimum wage rates.
Worker Category
Federal Exemption
State Exemption
Minimum Wage (in $)
Farmworkers
No
Yes
7.25
Taxicab Drivers
No
Yes
7.25
Newspaper Deliverers
No
Yes
7.25
Publicly Supported Nonprofit Employees
No
Yes
7.25
Domestic Service Workers in a Private Home
No
Yes
7.25
Tipped Service Workers
Yes
Yes
6.28
Federal Government Employees
No
Yes
15.00
Youth and High School Students
Yes
Yes
4.25 or 7.25
Outside Salespersons
No
Yes
7.25
Professional/Salaried
Yes
Yes
N/A
Note: The table excludes some federal exemptions that are considered irrelevant under the state minimum wage laws.
Current Overtime Pay Law and Exemptions:
Both federal and state laws mandate that employers pay 1.5 times the minimum wage rate to employees for hours worked beyond 40 hours per week. However, there are exemptions to these overtime requirements. These are mentioned in the table below.
Worker Category
Federal Exemption
State Exemption
Is Overtime Owed?
Farmworkers
Yes
Yes
No
Retail and Service Employees
No
Yes
Yes
Seasonal Amusement Park and Recreation Establishment Employees
Yes
Yes
No
Hotel, Motel, and Restaurant Employees
No
Yes
Yes
Vermont Local Government Employees
No
Yes
Yes
Certain Employees in the Healthcare Sector
No
Yes
Yes
Transportation Employees
Yes
Yes
No
Professional/Salaried Employees
Yes
Yes
No
Note: The table excludes federal exemptions made ineffective by Vermont’s overtime law. Some of these exemptions have additional complicated details. Refer to the Wages and Hour Division for complete information.
Minimum Wage Eligibility and Exemptions:
All employers who employ two more employees need to pay minimum wages. However, there are some exemptions to this rule. These include,
Full-time high school students
Federal employee
Newspaper delivery people and taxi drivers
Agricultural workers and domestic workers in private homes
Outside salespeople
Employees of certain non-profit organizations, excluding nurses’ aides and laundry workers
While full-time high school students fall in Vermont’s exempt category, they are paid minimum wages under federal law. If the federal minimum wage rates exceed that of Vermont’s, the state tries to match the federal rate, effective the same day.
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The tipped minimum wage in Vermont is $7.01 per hour as of January 1, 2025. It is nearly 50% of the full minimum wage of $14.01.
The state of Vermont typically adjusts its minimum wage annually in January. Adjustments are made based on inflation and the Consumer Price Index (CPI).
As of February 14, 2025, Vermont’s living wage is approximately $16.50 to $17.00 per hour for a single adult. However, this varies based on region and household size. For instance, a single parent with one child is entitled to earn $32.58 per hour in urban areas, and a single person with no child should receive $15.72 per hour in rural areas and $18.49 per hour in urban areas.
Almost all employees working in Vermont are eligible to receive the state’s minimum wage, except for some exemptions. These include full-time students, agricultural workers, newspaper delivery persons, and federal employees. Refer to this list for complete details.
None of Vermont’s cities observe a higher minimum wage than the state rates. They follow the state-established minimum wage.
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