Effective January 1, 2026, Virginia’s minimum wage will increase from $12.41/hour to $12.77/hour, based on the state’s mandated cost-of-living adjustment tied to the Consumer Price Index (CPI).
This 2.9% increase, confirmed by the Virginia Department of Labor and Industry (DOLI), is based on the 2024 Consumer Price Index for the South region, as required by Virginia’s cost-of-living adjustment statute.
What Employers Should Know:
- Applies statewide to most employees, with limited exceptions for specific roles and industries.
- Employers must ensure all applicable hourly workers earn at least $12.77/hour starting with the first pay period in 2026.
- This increase is part of Virginia’s phased minimum wage schedule passed in 2020. Future increases beyond 2026 may depend on General Assembly approval.
Compliance Checklist:
- Review all hourly wages to identify impacted roles.
- Adjust payroll systems to reflect the new minimum rate.
- Notify affected employees ahead of the change.
- Update job postings, offer letters, and internal policies as needed.
Context: While most workers in Virginia already earn more than the minimum wage—the average hourly wage in the Richmond region is $32.11/hour—this update may still impact entry-level roles, nonprofits, and small employers with narrow wage margins.
For many businesses, particularly small and midsize employers, raising the wage floor can trigger upward adjustments across their pay scale. Learn more about these ripple effects in our related article on Wage Compression and Compensation Planning.
Additional Resources:
For questions about how this change may impact your business or workforce planning, please reach out to our team. We’re here to help you stay compliant and informed.
