1
Know your state's minimum wage
Start with the legal floor. If you are only $1 or $2 above minimum wage, that is a real leverage point in the conversation.
Minimum Wage and Overtime Update
Minimum wage data: Updated July 2025 (DOL)Hourly workers do not think in annual salary first. They think in dollars per hour, paycheck size, overtime, and whether the raise keeps them above the state minimum wage.
Hourly Worker Raise Calculator
Hourly Worker Raise Calculator
Enter your hourly rate and see exactly how much more you take home per week, per paycheck, and per year. Includes overtime impact and state minimum wage comparison.
Reference points
Typical raise math for hourly workers
40 hours/week$0.50/hr = $1,040/year
With 5 OT hours/week$0.50/hr = about $1,235/year
2026 Hourly Worker Salary Benchmarks
2026 Hourly Worker Salary Benchmarks
A $0.50/hr raise is only a small number on paper. For hourly workers, the real question is how much more lands in each paycheck and whether the new rate stays above the minimum wage floor.
| Role / Sector | Avg Hourly Rate | Avg Annual | Source |
|---|---|---|---|
| All Private Sector Workers | $36.53/hr | $75,982 | BLS Aug 2025 |
| Retail Worker | $17.15/hr | $35,673/yr | ZipRecruiter May 2026 |
| Fast Food / QSR Worker | $19.51/hr | $40,581/yr | ZipRecruiter May 2026 |
| Leisure & Hospitality | $22.95/hr | $47,736/yr | BLS Aug 2025 |
| Construction Worker | $39.98/hr | $83,158/yr | BLS Aug 2025 |
| Manufacturing Worker | $35.50/hr | $73,840/yr | BLS Aug 2025 |
| Utilities | $52.75/hr | $109,720/yr | BLS Aug 2025 |
| Information | $52.58/hr | $109,366/yr | BLS Aug 2025 |
| Financial Activities | $47.74/hr | $99,299/yr | BLS Aug 2025 |
| Professional & Business Services | $44.57/hr | $92,706/yr | BLS Aug 2025 |
| Wholesale Trade | $39.00/hr | $81,120/yr | BLS Aug 2025 |
| Transportation & Warehousing | $31.71/hr | $65,957/yr | BLS Aug 2025 |
| Other Services | $32.84/hr | $68,307/yr | BLS Aug 2025 |
| Education & Health Services | $35.53/hr | $73,902/yr | BLS Aug 2025 |
| Federal Minimum Wage | $7.25/hr | — | DOL |
Sources: BLS Average Hourly Earnings; ZipRecruiter Retail Worker Salary; ZipRecruiter Fast Food Worker Salary; DOL State Minimum Wage Laws.
Hourly Raise Calculator
Enter dollars per hour, not annual salary
or
Enter either New Rate or Raise Amount. The other field updates automatically.
Federal law generally requires overtime pay at 1.5x for hours over 40/week under the FLSA.
Your Raise Breakdown
+$0.75/hr (+5.0%)
| Period | Before | After | Gain |
|---|---|---|---|
Per Hour Hourly rate | $15.00/hr | $15.75/hr | +$0.75/hr |
Per Week (40h) Regular hours | $600.00 | $630.00 | +$30.00 |
Bi-weekly Paycheck Regular-hours gross | $1,200.00 | $1,260.00 | +$60.00 |
Per Month Regular-hours gross | $2,600.00 | $2,730.00 | +$130.00 |
Per Year Regular-hours gross | $31,200.00 | $32,760.00 | +$1,560.00 |
Year incl. OT No overtime selected | $31,200.00 | $32,760.00 | +$1,560.00 |
After-Tax Estimate
Estimated additional take-home: +$1,191.06/year (+$45.81/bi-weekly).
California Minimum Wage Comparison
Minimum wage data: Updated July 2025 (DOL). Your selected new rate is $15.75/hr.
| Benchmark | Rate | vs. Your New Rate |
|---|---|---|
| Federal Minimum Wage | $7.25/hr | Your rate is +117.2% above federal minimum. |
| California State Minimum | $16.50/hr | Your new rate is $0.75 below state minimum. |
Important: California's minimum wage is $16.50/hr. Your new rate of $15.75/hr is below the California state minimum wage. Your employer is legally required to pay at least $16.50/hr for covered work.
Your new rate is below the legal minimum wage.
Your new rate of $15.75/hr is below the California minimum wage of $16.50/hr. This is a legal violation for covered workers. Contact your state labor board or the DOL Wage and Hour Division.
Small Raise Scenarios
What Does a Small Raise Really Mean?
For hourly workers, raises often arrive in $0.25, $0.50, $0.75, or $1.00 increments. At 40 hours/week, the annual dollar impact is the same at every wage level.
| Current Rate | +$0.25/hr | +$0.50/hr | +$0.75/hr | +$1.00/hr |
|---|---|---|---|---|
| $12.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
| $14.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
| $15.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
| $17.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
| $20.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
| $25.00/hr | +$520/yr | +$1,040/yr | +$1,560/yr | +$2,080/yr |
Key insight: A $0.50/hr raise is always $1,040/year at 40 hours/week, but its percentage impact is much larger at lower wages. On $12.00/hr it is +4.2%; on $20.00/hr it is +2.5%. With 5 hours of weekly overtime, a $0.50/hr raise adds about $195/year more.
Minimum Wage Reference
State Minimum Wage Rates - 2025 (Updated July 2025)
Use this table to check whether your new hourly rate stays above the legal floor in your state. DC and California are highlighted because they are the highest minima in this reference set.
| State | Minimum Wage | Notes |
|---|---|---|
| Alabama | $7.25/hr | No state minimum wage law. |
| Alaska | $13.00/hr | Adjusted annually. |
| Arizona | $14.70/hr | Indexed annually. |
| Arkansas | $11.00/hr | 4+ employees. |
| California | $16.50/hr | Adjusted annually. |
| Colorado | $14.81/hr | Indexed annually. |
| Connecticut | $16.35/hr | Adjusted annually. |
| Delaware | $15.00/hr | State minimum wage. |
| District of Columbia | $17.95/hr | Highest minimum wage in the U.S. |
| Florida | $13.00/hr | Increasing to $15.00 by Sept. 30, 2026. |
| Georgia | $7.25/hr | Federal rate applies for most workers. |
| Hawaii | $14.00/hr | State minimum wage. |
| Idaho | $7.25/hr | Federal rate applies. |
| Illinois | $15.00/hr | State minimum wage. |
| Indiana | $7.25/hr | Federal rate applies. |
| Iowa | $7.25/hr | Federal rate applies. |
| Kansas | $7.25/hr | Federal rate applies. |
| Kentucky | $7.25/hr | Federal rate applies. |
| Louisiana | $7.25/hr | No state minimum wage law. |
| Maine | $14.65/hr | Adjusted annually. |
| Maryland | $15.00/hr | State minimum wage. |
| Massachusetts | $15.00/hr | State minimum wage. |
| Michigan | $10.56/hr | Indexed annually. |
| Minnesota | $11.13/hr | Large-employer rate. |
| Mississippi | $7.25/hr | No state minimum wage law. |
| Missouri | $13.75/hr | Indexed annually. |
| Montana | $10.55/hr | Adjusted annually. |
| Nebraska | $13.50/hr | Indexed annually. |
| Nevada | $12.00/hr | State minimum wage. |
| New Hampshire | $7.25/hr | Federal rate applies. |
| New Jersey | $15.49/hr | Large-employer rate. |
| New Mexico | $12.00/hr | State minimum wage. |
| New York | $15.50/hr | Statewide base rate. |
| North Carolina | $7.25/hr | Federal rate applies. |
| North Dakota | $7.25/hr | Federal rate applies. |
| Ohio | $10.70/hr | Indexed annually. |
| Oklahoma | $7.25/hr | Federal rate applies. |
| Oregon | $14.70/hr | Standard statewide rate. |
| Pennsylvania | $7.25/hr | Federal rate applies. |
| Rhode Island | $15.00/hr | State minimum wage. |
| South Carolina | $7.25/hr | Federal rate applies. |
| South Dakota | $11.50/hr | Indexed annually. |
| Tennessee | $7.25/hr | No state minimum wage law. |
| Texas | $7.25/hr | Federal rate applies. |
| Utah | $7.25/hr | Federal rate applies. |
| Vermont | $14.01/hr | Adjusted annually. |
| Virginia | $12.41/hr | State minimum wage. |
| Washington | $16.66/hr | Highest state minimum in the continental U.S. |
| West Virginia | $8.75/hr | State minimum wage. |
| Wisconsin | $7.25/hr | Federal rate applies. |
| Wyoming | $7.25/hr | Federal rate applies. |
Federal minimum wage has not changed since 2009. If your state follows the federal rate, your legal floor is still $7.25/hr.Use the calculator above to see whether your raise keeps you above minimum wage.
Industry Benchmarks
Average Hourly Wages by Industry - 2025-2026
Retail and leisure roles are highlighted because they are common hourly-worker comparisons. The table is intentionally broader so you can see where your wage sits in the labor market.
| Industry / Role | Avg Hourly Rate | Avg Annual | Source |
|---|---|---|---|
| All Private Sector | $36.53/hr | $75,982 | BLS Aug 2025 |
| Utilities | $52.75/hr | $109,720 | BLS Aug 2025 |
| Information | $52.58/hr | $109,366 | BLS Aug 2025 |
| Financial Activities | $47.74/hr | $99,299 | BLS Aug 2025 |
| Professional & Business Services | $44.57/hr | $92,706 | BLS Aug 2025 |
| Construction | $39.98/hr | $83,158 | BLS Aug 2025 |
| Wholesale Trade | $39.00/hr | $81,120 | BLS Aug 2025 |
| Manufacturing | $35.50/hr | $73,840 | BLS Aug 2025 |
| Transportation & Warehousing | $31.71/hr | $65,957 | BLS Aug 2025 |
| Other Services | $32.84/hr | $68,307 | BLS Aug 2025 |
| Education & Health Services | $35.53/hr | $73,902 | BLS Aug 2025 |
| Retail Trade | $25.47/hr | $52,978 | BLS Aug 2025 |
| Leisure & Hospitality | $22.95/hr | $47,736 | BLS Aug 2025 |
| Retail Worker (ZipRecruiter) | $17.15/hr | $35,673 | ZipRecruiter May 2026 |
| Fast Food Worker (ZipRecruiter) | $19.51/hr | $40,581 | ZipRecruiter May 2026 |
Overtime Pay
How Overtime Pay Works - And Why Your Raise Matters More Than You Think
Under the Fair Labor Standards Act, most hourly workers must be paid 1.5x their regular rate for hours over 40 per week. That means a raise increases both straight-time pay and overtime pay.
| Metric | Before ($15.00/hr) | After ($16.00/hr) | Gain |
|---|---|---|---|
| Regular Rate | $15.00/hr | $16.00/hr | +$1.00/hr |
| Overtime Rate (1.5x) | $22.50/hr | $24.00/hr | +$1.50/hr |
| Regular Pay/Week (40h) | $600.00 | $640.00 | +$40.00 |
| OT Pay/Week (10h) | $225.00 | $240.00 | +$15.00 |
| Total/Week | $825.00 | $880.00 | +$55.00 |
| Total/Year | $42,900 | $45,760 | +$2,860 |
Key insight: A $1.00/hr raise with 10 hours of weekly overtime is worth $2,860/year, not just $2,080/year. Overtime makes the raise work harder.
FLSA exemption note
Some workers are exempt from overtime rules, including certain agricultural workers, some transportation workers, and some employees of very small businesses. If you think overtime is missing from your paycheck, contact the DOL Wage and Hour Division.
View DOL overtime rulesHow to Ask for a Raise
How to Ask for a Raise as an Hourly Worker
Hourly workers usually get the strongest result when they anchor to a legal floor, a market rate, and a specific hourly target.
2
Know the market rate
Compare your role against retail, fast food, and leisure benchmarks before you ask for more.
3
Time it well
Ask after a good review, after extra responsibilities, or when labor is tight and retention matters.
4
Ask for a specific number
Do not ask for 'a raise'. Anchor on a clear hourly target like $15.00 to $16.50 per hour.
5
Use your leverage
Tenure, reliability, and a competing offer all matter. Replacement costs are usually far higher than a modest hourly increase.
FAQ
Frequently Asked Questions
How do I calculate my annual salary from an hourly wage?
Multiply your hourly rate by 40 hours and by 52 weeks. A $15.00 hourly wage equals $31,200/year before overtime and taxes.
What is the average hourly wage in the US in 2026?
BLS average hourly earnings for all private sector workers were $36.53/hr in August 2025. Frontline hourly roles are usually much lower, such as retail at $17.15/hr and fast food at $19.51/hr.
How much is a $1.00/hr raise per year?
At 40 hours per week and 52 weeks per year, a $1.00/hr raise equals $2,080/year before taxes. With overtime, the gain is larger because the overtime rate also rises.
What is the minimum wage in my state?
Federal minimum wage is $7.25/hr, but many states set a higher floor. DC is $17.95/hr and California is $16.50/hr in the July 2025 reference data used on this page.
How is overtime pay calculated for hourly workers?
Under the FLSA, most hourly workers must be paid 1.5x their regular rate for hours over 40 in a week. A higher hourly wage also raises the overtime rate.
Is a $0.50/hr raise good?
At 40 hours per week, a $0.50/hr raise equals $1,040/year before taxes. Whether that is good depends on your current rate, your state's minimum wage, and local market benchmarks.
Can my employer raise my pay without telling me?
Yes, employers can increase pay without advance notice. They generally cannot reduce your pay below the agreed rate without following state notice rules.
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