HOURLY WAGE INDEX
Let’s talk wages in Montana
What is the minimum wage in Montana?
The minimum wage in Montana is $10.85 per hour for all employees, effective January 1, 2026. Montana does not allow a tip credit — tipped employees must be paid the full minimum wage. Employees under 18 may be paid $8.75 per hour during their first 90 days of employment. The rate is indexed to inflation and adjusts annually.
What is the average wage in Montana?
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Montana is $27.22. Wages vary by occupation, industry, and location.
What is the living wage in Montana?
The estimated living wage in Montana is $24.23 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in Montana
● Standard Minimum Wage: $10.85 (MT.gov) (Mont. Code § 39-3-409).
● Tipped Minimum Wage: Employers must pay full minimum wage.
● Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL).
● Meal Breaks: 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).
● 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: Those required by law, such as taxes, and those authorized by the employee in writing. Reasonable deductions for board, room, and incidentals are allowed. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Mont. Code § 39-3-204) (29 C.F.R. § 4.168) (29 US Code § 203).
● Final Paychecks:
● Resignation: The first of 15 days from separation or the next regular payday.
● Termination: Due immediately unless the employer has a written policy that extends payment time to the first of 15 days from separation or the next regular payday (Mont. Code § 39-3-205).
● Wage Payment Frequency: Semi-monthly (Mont. Code § 39-3-204).
● Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
● Paid Family and Medical Leave: No paid leave is mandated by law. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
● Maximum Daily and Weekly Hours for Children Under 16: Minors under 14 cannot work, with limited exceptions. No working during required school hours, with limited exceptions. Limited to working hours between 7 a.m. and 7 p.m., extending to 9 p.m. between June 1 and Labor Day. No more than three hours per school day and 18 hours per school week. No more than eight hours per nonschool day or 40 hours per nonschool week. (MT DoL) (Mont. Code § 39-3-204) (29 C.F.R. § 570.35).
● Maximum Daily and Weekly Hours for Children 16 and 17: No state/federal law restricting work hours beyond required school hours for non-hazardous occupations (Mont. Code § 41-2-107) (DoL) (29 C.F.R. § 570.35).
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
Resources
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