Minimum wage earners across the state are getting small raises, as Maine’s statewide minimum wage and the wage in the cities of Portland and Rockland all increased, effective Jan. 1.
The state minimum wage is now $15.10 per hour, up from $14.65, a hike that’s expected to boost paychecks, marginally, for approximately 35,000. The wage is now $7.55 for tipped workers.
Workers who earn entry-level wages in the cities of Rockland and Portland are benefitting from slightly bigger increases.
Rockland boosted the minimum wage for employers with more than 25 staffers, to $16 per hour from $15.50 and Portland is going up to $16.75, from $15.50. Tipped workers in Rockland will earn $8, while in Portland they’ll earn $8.38.
Employers of tipped workers across the state are required to ensure that wages and tips combined, total the full minimum wage rates for their location.
Agricultural workers in Maine may see the most benefit from the state minimum wage hike, as they are now eligible, for the first time, to be paid at the state level, rather than the federal rate of $7.25 per hour, thanks to the Maine legislature’s passage in June 2025 of LD 589.
The Maine Dept. of Labor is required to make annual adjustments to the minimum wage based on the federal cost of living index for the Northeast region.
Increases for Portland were controversial
In Portland, the minimum wage approved by 63% of voters in Nov. 2025, will rise over the next two years, bringing the rate to $19 per hour by 2028. After that, the wage will be adjusted annually for inflation.
The proposed hike was a contentious issue, with many small businesses and the Portland Regional Chamber of Commerce opposed to the increases. Some restaurant owners and nonprofit leaders predicted the higher rates would drive small businesses to neighboring towns.
As for the effect on Portland’s 2,000-plus employee payroll, Brendan O’Connell, the city finance director, estimated that the wage hike could require an additional $10.1 million in property taxes to be collected between 2026 through 2029.
The wage increase is predicted to have a ripple effect, too, as workers at higher pay scales will expect a wage adjustment. According to the National Federation of Small Businesses, wage hikes can force small businesses to increase prices and possibly adjust hours and employee benefits.
Rates in some other states and cities are higher
More than 30 states and municipalities have implemented minimum wage increases above the federal pay rate, which has not budged since 2009. More than 8.3 million workers are expected to benefit, which collectively will add up to an estimated $5 billion in earnings nationwide, according to a report by the Economic Policy Institute.
Seattle’s minimum wage is $21.30 per hour. The rate in Washington, D.C., rings up at $17.95.
Massachusetts has had a minimum wage of $15 since 2023. New Hampshire is one of close to 20 states that still adhere to the federal number of $7.25 per hour, making the minimum wage in the “live free or die” state the lowest of all the New England states. Vermont’s rate for 2026 is $14.42 per hour.