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HOURLY WAGE INDEX

Let’s talk wages in Alaska

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$11.73

What is the minimum wage in Alaska?

What is the minimum wage in Alaska? The minimum wage in Alaska is $11.73 per hour. The minimum wage in Alaska is higher than the federal minimum wage of $7.25 per hour. Alaska's law requires employers to pay at least the state minimum wage to employees. Tipped employees must be paid at least $9.89 per hour in addition to tips.
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$33.60

What is the average wage in Alaska?

According to the Bureau of Labor Statistics, the average wage in Alaska is $33.60 per hour. However, it's important to note that the average wage varies depending on the occupation and industry. For example, the average wage for management occupations is $44.77 per hour, while the average wage for food preparation and serving-related occupations is $16.45 per hour.

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$39.47

What is the living wage in Alaska?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

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A guide to hourly labor laws in Alaska

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage: $11.73 (Alaska.gov) (Alaska Stat. § 23.10.065).
  • Tipped Minimum Wage: $11.73.
  • Overtime: Calculated at 1.5 times the regular rate, not below 1.5 times the minimum wage (Alaska Stat. § 23.10.060).
  • Meal Breaks:
    • Adults: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
    • Minors: Employees under 18 who work 5+ hour shifts earn a 30+ minute break. Minors scheduled for 6+ hour shifts earn a 30+ minute break.
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
  • Wage Deductions: Limited to specific circumstances, such as missing property. Deductions cannot reduce gross pay below minimum wage or cut into overtime. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (8 Alaska Admin. Code § 15.160) (29 C.F.R. § 4.168) (29 US Code § 203). 
  • Final Paychecks:
    • Termination: Within three working days.
    • Resignation: By the next regular payday, at least three days after resignation (Alaska Stat. § 23.05.140). 
  • Wage Payment Frequency: At least monthly (Alaska Stat. § 23.05.140). 
  • Paid Sick Leave: Not required unless internal policies or collective bargaining agreements promise benefits (Alaska DoLWD) (DoL).
  • Paid Family and Medical Leave: The Alaska Family Leave Act provides eligible staff protected leave for up to 18 weeks in a two-year period (AFLA). The FMLA provides eligible employees up to 12 unpaid weeks in a one-year period (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • School holiday: 40 hours per week up to six days per week.
    • School session: Nine hours per day of school and work combined; maximum three hours worked per week.
    • Hours: Between 5 a.m. and 9 p.m.
    • Location restrictions: Children under 16 are barred from working in establishments that serve alcohol.
    • Federal law: Limits children under 16 to three hours per day on school days and eight hours per day on non-school days, 7 a.m. until 7 p.m. Work times are extended until 9 p.m. between June 1 and Labor Day. (29 C.F.R. 570.35) (FLSA).
  • Maximum Daily and Weekly Hours for Children 16 and 17: All minors under 18 must have a work permit when working at a restaurant designated to sell alcohol. (Alaska Stat. § 23.10.325). They are barred from certain activities, including operating and cleaning power-driven bakery machines (Alaska Department of Labor).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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