Minimum Wage in Vermont – weekly, monthly, annually

In Vermont, the minimum wage is $12.55 per hour. This is $5.30 greater than the federal minimum wage of $7.25. Vermont’s minimum wage was raised to this level in January 2022 from the previous minimum pay rate of $11.75.

This increase impacted the tipped workers’ wages as well, as this equals 50 percent of the state’s minimum wage (so $6.28) an hour,

In accordance with state law, Vermont adjusts the minimum wage (and also the tipped minimum pay) annually at the start of every new year.

In Vermont, workers can be considered “service or tipped employees” if they are restaurant, motel, hotel, tourist establishment, or similar place workers who regularly and customarily receive over $120 a month in tips for personal and direct customer service.

Additionally, nonprofit workers, government employees, high school students, taxi drivers, some agricultural workers, newspaper and advertisement home delivery workers, and casual domestic workers, like housekeepers and babysitters, may be exempt from the minimum pay requirements in Vermont.

But there are more categories that are exempt from Vermont’s overtime and minimum wage regulations. Vermont employers can, for instance, pay young workers under the age of 18 $4.25 an hour, but for no longer than the first 90 days on a new job.

In Vermont, executive, administrative, and professional workers, as well as outside salespersons, may also be exempt from the state’s minimum pay overtime regulations. Read more below.

Vermont Paycheck Calculator

This Vermont Paycheck Calculator translates your hourly pay into weekly, annual, or monthly earnings.

How to use this Vermont paycheck calculator

  1. Step one, enter your hourly pay.
  2. Step two, enter your weekly work hours.
  3. The paycheck calculator shows you how your hourly pay translates to weekly, annual, or monthly earnings.

How does the Vermont paycheck calculator work?

Workers who are paid by the hour may find it hard to see how their hourly pay translates to annual, weekly, or monthly earnings.

For workers who get weekly, biweekly, or monthly salaries, things are different. They get their paychecks at the end of a work period. For hourly workers, this paycheck calculator makes things easy. You can immediately see what your hourly wage means in terms of weekly, annual, or monthly earnings.

Just enter your hourly pay and how many hours you work in a week. Then, the paycheck calculator shows you what your hourly wage means in terms of annual, monthly, or weekly earnings.

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

These results are generated by multiplying your base hourly pay by the number of hours, weeks, or months you work annually, assuming you work 40 hours a week.

Minimum Wage in Vermont

So Vermont’s minimum hourly pay is $12.55, which relates to $100.40 per day, $502.00 per week (at 40 hours), $2175.33 per month, and $26,104.00 per year.

As we said before, not all Vermont employees will receive the state’s minimum hourly pay. Some students, nonprofit workers, casual domestic workers, and government employees are exempt from Vermont’s minimum wage or overtime requirements.

Vermont minimum wage exemptions

Vermont exempts some worker groups from its minimum pay and/or overtime requirements. The following list is not a complete overview, but it lists some main categories.

  • Persons working in casual domestic services, such as babysitters or housekeepers, are exempt, as are government employees.
  • Nonprofit workers, taxi drivers, newspaper delivery workers, and some agricultural and/or seasonal workers may be exempt as well.
  • Students working part-time during the school year or vacation periods are exempt from the state’s minimum pay requirements.
  • In Vermont, an employer can pay new employees under the age of 18 a “training wage” of just $4.25 for the initial 90 days.
  • A tipped worker can be paid $6.28 an hour. If, however, the employee doesn’t earn Vermont’s minimum standard pay, including tips, the employer has to compensate for the difference.
  • Students under the age of 20 that work in a work-learn project of a university can be paid 85 percent of Vermont’s minimum pay, so $10.67, but the job has to be part-time for no more than 20 hours a week.
  • Administrators, executives, business professionals, and outside salespersons hold exempt status as well from Vermont’s minimum pay and overtime regulations.

In line with FLSA (Fair Labor Standards Act) regulations, all Vermont employers are required to clearly display state-approved informative posters to educate their workers about Vermont’s minimum wage and overtime laws, as well as other workers’ rights.

Vermont overtime wage

When Vermont employees work over 40 hours a week, employers are required to compensate the workers at a rate of 1.5 times their usual hourly pay for those overtime hours. In Vermont, there is no daily overtime limit.

So, in Vermont, that means that the pay rate for qualifying overtime hours is at least $18.82 per hour. Vermont exempts some workers from overtime compensation, through. The following is not a full list, but it shows the main categories.

  • Retail or service establishment workers may be exempt from overtime pay regulations, as are employees of recreational and amusement establishments that are open only seasonally (up to 6 or 7 months a year).
  • Hotel, motel and restaurant workers may be exempt from Vermont’s overtime regulations.
  • Employees of nursing homes, hospitals, maternity homes, public health centers, and residential care homes may also be exempt.
  • Government workers, executives, administrators, and outside salespersons may hold exempt status.
  • Some agricultural or seasonal workers are exempt from Vermont’s overtime regulations.

Nothing in this post constitutes legal advice. So, if you have any questions about Vermont’s minimum wage and/or overtime laws or compliance, please consult a tax professional or tax attorney.