If you plan to work in The Magnolia State, you’re likely interested in knowing the minimum wage. Mississippi is one of the several states that does not have a minimum wage. Instead, like neighboring state Louisiana, the state defers to the Fair Labor Standards Act (FLSA), which mandates a minimum wage rate of $7.25 per hour.
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2020 Minimum Wage in Mississippi: $7.25 per hour
Today, most employees in Mississippi will earn at least $7.25 per hour. However, different types of employees who earn minimum wage may see variances in their take-home pay.
For instance, some hourly employees may work overtime, while others may work in the gig economy, working beyond or below the typical 40-hour workweek. While these amounts may vary, rough estimates can be calculated for tipped employees, as well as for those who work overtime, by using this minimum wage figure.
Tipped: $7.25 per hour
Mississippi employers can exact a $5.12 tax credit for tipped employees. While a tipped employee may earn no less than $7.25 per hour (including tips), they may be paid a minimum cash wage of $2.13 if they are receiving enough tips that they ultimately earn the minimum wage. Mississippi does not indicate a tip amount required to be considered a tipped employee, and, because of this, any employee who earns the federal standard of at least $30 in tips in a month is deemed a tipped employee in Mississippi.
For a typical 40-hour workweek, a Mississippi employee will earn at least $290.00 — assuming they take no time off, work no overtime, and/or receive holiday pay. Working 40 hours at a rate of $7.25 per hour, a Mississippi employee will see a $290 paycheck before state and federal tax deductions.
If a Mississippi employee worked every hour of a 40-hour workweek and received no overtime, they would earn at least $15,080 over the 52 weeks of the year. This wage, again, is calculated before state and federal tax deductions — so an average yearly wage may be lower. This also assumes that the employee does not ask for and receive a raise at any point in that year.
Overtime: $10.88 per hour
Employees who work over 40 hours in a standard workweek will be authorized to receive overtime pay at a rate of time-and-a-half. This means that a Mississippi employee will earn their regular minimum wage ($7.25) plus half of their wage ($3.63) — which is a total of $10.88 per each hour exceeding the regular 40 hours.
Mississippi Minimum Wage Increase News
Although the state has used the stagnant federal minimum wage for over a decade, it is unlikely to increase soon — despite businesses in the state being okay with an increase. While there are many ongoing efforts to establish a state minimum wage that is higher than the federal rate, there are no current formal plans to do so.
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