Alaska State Minimum Wage

In 2023 the Alaska state minimum wage increased for the first time since 2021 when it rose from $10.34 per hour to $10.85 per hour, representing a 51-cent increase, which equates to 4.9%. In this guide, you will learn all about the Alaska state minimum wage for 2023 and previous years, as well as learn all about minimum wage exemptions and exceptions within the state.

Alaska’s minimum wage rate is certainly not the highest in the U.S., but it is comparatively high when compared with others, especially states that follow the federal minimum wage. The way in which the Alaska minimum wage is calculated is through the consumer price index, inflation, and cost of living.

Did the Alaska Minimum Wage Go Up?

The graphic below highlights the Alaska minimum wage over the past several years. The minimum wage did not go up in 2022, however, it did in 2023.

If you are a full-time worker on minimum wage in Alaska, your earnings could be as follows:

• Daily Minimum Wage: $86.80 (based on an 8-hour working day).
• Weekly Minimum Wage: $434.00 (based on a 40-hour week).
• Yearly Minimum Wage: $22,568.00 (based on being paid 52 weeks per year).

You can view and download the official Alaska state minimum wage labor law poster for 2022-2023 here at no charge. Employers must display a poster outlining the requirements of the Fair Labor Standards Act (FLSA), ensuring that accurate employee time and pay records are kept.

The reason behind the small increases to Alaska’s minimum wage each year is that they adjust their minimum wage (Alaska law) based on inflation using the Consumer Price Index (CPI). Voters passed a ballot initiative in 2014, which requires the minimum wage to be adjusted annually for inflation.

It was on September 16, 2020, that Alaska agreed to increase the minimum wage rate by 1.5% ($0.15 cents) from $10.19 to $10.34 per hour effective January 1, 2021. For information on the records you must keep as an employer, your worker’s rights, or anything pay and wage-related, you can visit the Alaska Department of Labor.

Alaska Minimum Wage History

The table below provides the current rate and history of Alaska’s minimum wage over the past 40+ years since 1983. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.

Alaska Minimum Wage Exemptions

In addition to the regular minimum wage rate, there are a few Alaska state minimum wage exemptions that typically depend on your age or employment situation. Below are the various minimum wage exemptions with some situational examples.

You can see the various minimum wage exemptions for Alaska in our graphic below:

Alaska Student Minimum Wage

The minimum wage for student employees in Alaska is 85% of the Alaska state minimum wage, making their hourly pay $9.22 per hour in 2023.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Alaska minimum wage rate of $10.85 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying. Despite a student minimum wage rate, many Alaska employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Alaska Under 20 Minimum Wage

If you are under 20 years old in Alaska, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2023 Alaska minimum wage of $10.85 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Alaska Tipped Minimum Wage

Most states will have a different tipped minimum wage rate to the regular minimum wage, which is then supplemented by tip credits to ensure that the tipped employee will make at the very least the minimum wage rate for that state. However, this is not the case in Alaska. In Alaska, tipped employees will be paid the full minimum wage rate of $10.85 per hour, with the addition of any tips they make on top of this, much to the delight of Alaska’s tipped employees!

Alaska Overtime Minimum Wage

Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40. So, the overtime minimum wage in Alaska is $16.28 per hour, 1.5 times the minimum wage of $10.85 per hour.

Alaska Wage and Hour Contact Details

For more information on the Alaska Minimum Wage, you can contact the Wage and Hour Administration Offices at the following locations. Please note the email address is the same for all three locations.

Anchorage – Muldoon Job Center

1251 Muldoon Road, Suite 113
Anchorage, AK 99504
Phone: (907) 269-4900
Fax: (907) 269-4915
statewide.wagehour@alaska.gov
Hours: 8:30 am-4:30 pm

Fairbanks

675 7th Avenue, Station J
Fairbanks, AK 99701-4596
Phone: (907) 451-2886
Fax: (907) 451-2885
Hours: 8:30 am-4:30 pm

Juneau

1111 W. 8th St. Rm 302
P. O. Box 111149
Juneau, Alaska 99811-1149
Phone: (907) 465-4842
Fax: (907) 465-3584
Hours: 8 am-4:30 pm

Free Alaska Wage and Hour Act Poster