Minimum Wage in Maryland – weekly, monthly, annually

In Maryland, the minimum hourly wage is $12.50, which is $5.25 more than the federal minimum hourly wage of $7.25.

Maryland’s minimum wage of $12.50 an hour applies only to companies with 15 workers or more. For companies with fewer than 15 employees, the minimum hourly wage is $12.20.

The Marland tipped hourly wage for workers earning more than $30 in gratuity per month is at least $3.63. However, tipped employees that do not make the minimum pay per hour must be compensated by their employers.

Montgomery County has a minimum hourly wage of $15.00 for businesses and employers with 51 employees or more.

For businesses with 11 to 50 employees, a minimum hourly rate of $14.00 applies here, and for small businesses with ten or fewer employees, the minimum hourly rate is $13.50.

Several worker categories are exempt from Maryland’s minimum pay requirements. Agricultural workers and food canning workers may be exempt, and movie theater and drive-in workers may also hold exempt status.

Additionally, young part-time workers ages 16 or under and part-time workers over the age of 62 may also hold exempt status under Maryland minimum wage regulations.

Maryland Paycheck Calculator

With our Maryland Paycheck Calculator, you can easily convert your hourly pay to weekly, monthly, or annual wages.

How to use the Maryland paycheck calculator

  1. Enter your hourly pay.
  2. Enter the number of your weekly work hours.
  3. The paycheck calculator now transforms your hourly pay into a weekly, monthly, or annual wage.

How does this Maryland paycheck calculator work?

Understanding their paychecks is, for the average employee, not something very complicated. They will generally receive a paycheck every month, biweekly, or each week. By the end of the year, they will also get their tax forms.

For workers that get their pay on an hourly basis, however, it might become more complicated. To help these workers figure out how their hourly pay relates to monthly, biweekly, or weekly earnings, we have created our paycheck calculator.

Just enter your hourly pay and how many hours you work a week, and the paycheck calculator (also called paycheck convertor) will show you your periodical earnings.

Time period Equation
Annual earnings = hourly pay times
40 hours times 52 weeks
Monthly earnings = annual pay divided by 12 months
Weekly earnings = hourly pay times 40 hours

These results are generated by multiplying your base hourly salary by the number of hours, weeks, or months you work yearly, assuming that you’re working 40 hours per week.

Minimum Wage in Maryland

So the Maryland minimum wage rate is $12.50 per hour. This translates to $100 per day, $500 per week (at 40 hours), $2167 per month, and $26,000 per year.

Not all Maryland employees receive the state minimum rate of $12,50 an hour because there are several categories of exempt workers. The minimum rate does not, for instance, apply to tipped workers, full-time enrolled high school or college students, and some more categories (more below).

Maryland minimum wage exemptions

The following overview is not a complete list of exempt categories, but it lists the main categories of employees that don’t need to receive at least Maryland’s minimum hourly rate of $12.50 an hour.

  • Tipped workers who earn at least $30 a month in tips must be paid at least $3.63 an hour, and their hourly pay, including tips, must be at least equal to Maryland’s minimum wage rate of $12.50. Restaurant employers using a gratuity credit must provide workers with an electronic or written wage statement that shows the employee’s pay, including cash pay and gratuity for each workweek. When a tipped employee doesn’t earn the minimum pay, the employer must compensate.
  • New workers under 20 years old can receive a trainee compensation of $4.25 an hour, but only during the initial 90 days.
  • Full-time college or high school students may get 85 percent of Maryland’s minimum hourly pay rate (so only $10.63) if they work up to 20 hours a week in a work-learn program provided by a college or university.
  • The employer’s direct family members hold exempt status, as do certain agricultural and seasonal workers.
  • Volunteers for religious, charitable, educational, or non-profit organizations, commissioned employees, outside salespersons, some educational trainees, and organized camp workers may also be exempt.
  • Some agricultural employees, food canning workers, movie theater or drive-in workers, part-time workers under the age of 16 (if they work 20 hours or less a week), and part-time employees older than 62 (if they work less than 25 hours a week) may also be exempt from Maryland’s minimum wage requirements.

Maryland overtime wage

Unless specifically exempt, Maryland employees receive overtime pay for all worked hours above 40 a week. The overtime rate is 1.5 times, or 150% of, their regular wage, so at least $18.75 an hour. Overtime work hours are registered by the week, not per day.

Not all employees need to receive 150% of their usual hourly pay rate for hours over 40 hours a week. Exceptions are employees of bowling establishments who may work 48 hours without overtime pay.

Employees of institutions other than hospitals that provide on-premise care to the aged, the sick, or disabled persons may also work for 48 hours without overtime compensation, and some agricultural workers may even not be entitled to overtime pay if they work up to 60 hours a week.

All Maryland employers are required to clearly display state-approved minimum wage posters in visible locations informing their employees about Maryland’s minimum wage requirements and other labor rights.

What is work time?

Work time consists of hours during which employees are carrying out duties and assignments for their employers, and this also includes the time needed for professional training and education relevant to the position.

When the position requires travel, for example, to visit clients or suppliers, those travel hours are work time. Commute time hours from home to work or vice versa are not regarded as work time.

So we can also say that work time covers all the hours that employees receive payment or are entitled to receive payment for engaging in activities controlled and initiated by their employers.

Please note that this post doesn’t contain legal advice. If you have any questions about Maryland’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.