Federal contractor minimum wage increasing

Federal contractors covered by Executive Order (EO) 13658 will need to pay a minimum wage of $13.65 per hour as of May 11, 2026.

This is an increase of 35 cents per hour over the current rate, which took effect on January 1, 2025. The tipped employee rate will also go up, increasing from $9.30 to $9.55 per hour.

The Department of Labor announced the new rate in a notice published in the Federal Register on February 9.

The rate applies to federal contracts entered into between January 1, 2015, and January 29, 2022. The department notes that although the number of covered contracts has significantly decreased over the past several years, there are some existing contracts that remain subject to the EO 13658 minimum wage.

Contracts entered into on or after January 30, 2022, had been covered by the EO 14026 minimum wage, but this EO was revoked in 2025 and is no longer being enforced.

Contractors covered by EO 13658 will need to display a new poster once the rate increase takes effect.

Key to remember: Federal contractors covered by Executive Order 13658 will need to pay a higher minimum wage as of May 11. They will also need to update their posters.