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Minimum Wage Definition & Meaning

alabama minimum wage

Alabama is one of the few states that does not have a state minimum wage. So Alabama’s minimum wage now follows the federal minimum wage which was  effective from July 24, 2009.

Alabama Minimum Wagealabama minimum wage

  • 2015 Minimum Wage:  $7.25/hour
  • 2015 Tipped Wage:  $2.13/hour

Cost of Living

According to recent studies, conducted by the Bureau of Economic Analysis, the cost of living in Alabama is lower than most other states. There are only three states which cost less for residents to live.  These calculations take into account things like goods and services and rent. Based on this methodology, a dollar in Alabama will get you farther than a dollar in a state such as California where the state minimum wage is currently $9.00 an hour.  After adjusting for inflation, if you earn $7.25 in Alabama it is considered equivalent to $8.23, while California’s higher rate of $9.00 an hour is worth only $7.97.

Get More Information

For more information from the U.S. Department of Labor, check out the following link: Federal Minimum Wage

Source:  Bureau of Economic Analysis, Regional Price Parities


What do you think about Alabama’s minimum wage? Feel free to share your thoughts by leaving a comment below!

From state to federal and local tax filing, here at AdvaPay Systems we provide you with guaranteed filing and deposit of your payroll taxes that protects clients from liability and also provides you with peace of mind.

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