The Austin minimum wage is $7.25 per hour in 2022. Austin is undoubtedly one of the most popular cities in the U.S., not just within the state of Texas.
Many choose Austin as their place of work and home due to a plethora of reasons, with the most notable being the consistently good weather and high quality of life for a comparatively affordable price in relation to the wages paid to those in the city. The constantly improving job market and education system go hand-in-hand when ensuring that the people of Austin are given the best opportunities possible.
The following graphic shows the Austin minimum wage rate over the past several years, which, unfortunately for many, has not increased.
The weekly minimum wage in Austin equates to $290 ($7.25×40) if you are working a full 40-hour week. There are, however, some exceptions to this hourly wage for student workers, tipped employees, and overtime workers, who will all receive different minimum wage rates.
Minimum Wage in Austin Exemptions
The state of Texas does not have its own specific minimum wage policy, which is why it defaults to the federal minimum wage rate, and subsequently, so does Austin. There are other cities in Texas such as Dallas which follow the same minimum wage laws as Austin and the state of Texas.
There are rules and laws in place to ensure that employers are paying their employees the minimum wage or above in Austin unless they are exempt employees.
Below we have listed all the minimum wage rates for exempt employees in Austin.
- Austin’s minimum wage for tipped employees is $2.13 per hour with a tip credit rate of $5.12.
- Student-workers (full-time high school or college) in Austin are paid a minimum wage of $6.16 per hour for up to 20 hours of work a week. Any more than this, and they are eligible for the full minimum wage of $7.25.
- The minimum wage in Austin for those under 20 years of age is $4.25 per hour until 90 days of employment have been reached. After this, they will be paid the full minimum wage of $7.25 per hour.
- The overtime minimum wage in Austin is $10.88 per hour for every hour worked in excess of 40 hours per week.
- City workers in Austin are eligible to be paid a minimum wage of $15.00 per hour, and this rate will increase to $22.00 per hour in the not too distant future.
What is the Austin Living Wage?
Due to Austin being such a big expansive city with a large population and competitive job market, you would expect the minimum wage to be higher for the city. But, unfortunately for many, Austin still follows the state minimum wage rate of $7.25 per hour.
However, there is a ‘living wage’ for Austin, which is calculated based on how much a person needs to pay their bills, food, and general cost of living expenses while living in the city.
So, the living wage for an adult living alone with no children in Austin is $15.08 per hour (via Living Wage Calculator), which is $7.83 higher than the minimum wage for the state itself.
Fortunately, most employers in Austin take this into account when they contemplate how much they should be paying employees within the city. Taking all of the living expenses into account, the living wage salary (for a full-time person) in Austin is $31,357 before state income tax in Texas.
Austin Living Wage for 1 Adult
Below is a table representing the living wage in Austin for a single adult, with different living wages for the additional amount of children they live with and care for.
|Single Adult||0 Children||1 Child||2 Children||3 Children|
Austin Living Wage for 2 Adults
The table below showcases the living wage in Houston for 2 adults with only one working, including the costs for the different numbers of children.
|2 Adults (1 working)||0 Children||1 Child||2 Children||3 Children|
What is the Average Wage in Austin?
According to payscale.com, the average base hourly rate is $20.08 per hour in Austin. If you worked full-time (40 hours per week or 2080 hours per year) the average annual income would be $43,264.
So, as an employee or future employee in Austin, you have a good chance of being paid a higher wage than the minimum wage of $7.25 per hour.
Fortunately, the average wage in Austin is just an average calculation, and you could certainly earn more than this when moving to the state. However, you may be paid even less, with the minimum wage being $7.25 per hour, which is the case for many Servers in Texas.
If the living wage in Austin is $15.08 and the average salary equates to an effective hourly rate of $20.08 per hour, Austin is most certainly a good choice for those seeking a move to the Lone Star State.
Austin Minimum Wage History
The table below displays the historical minimum wage rates in Austin since 1983. As you can see on the table, we have included percentage increases as well as the dollar increase per year.
|Texas City||Wage||Year||$ Wage Increase||% Increase|
The minimum wage in Austin is the same rate as the Texas state minimum wage, which also follows federal guidelines, resulting in an hourly wage of $7.25 per hour. As an employee in Austin, you must be paid this wage or higher by law.
The living wage is significantly higher than the minimum wage within the city, which is why the majority of Austin employers will pay more than $7.25 per hour to their employees despite not being legally obliged to.