Vermont's minimum wage to increase in the new year. See what the new rate will be.

Vermont's minimum wage will increase to $13.67 per hour starting Jan. 1, 2024, according to the state Department of Labor. This will be a $0.49 increase from the current minimum wage of $13.18.

The minimum wage for tipped employees will also increase on Jan. 1, from $6.59 to $6.84 per hour. Tipped employees have a base pay that is half that of the state minimum wage.

State law allows for tipped employees, like workers at restaurants, hotels and tourist spots, to be paid a lower minimum wage without tips, as long as the employer guarantees that the worker is paid at least the state minimum wage with tips factored in.

Vermont's minimum wage has increased slowly but steadily by $2.40 over the past four years. Much of this adjustment was compensation for inflation, as 2019's state minimum wage of $10.78 was equivalent to $12.81 by January 2023.

Minimum wage vs. livable wage

The livable wage for Vermont − the average hourly wage required to afford the basic needs of a full-time worker living in a two-person household with no children and employer-sponsored health insurance − is $15.33 per hour, according to a January 2023 report by the Vermont Legislative Joint Fiscal Office.

The livable wage for Burlington and South Burlington − defined as the hourly rate necessary for an individual to support themselves − is $17.93 for a working adult with no children, according to the Massachusetts Institute of Technology's Living Wage Calculator tool.

A bill calling for an increase of the state minimum wage to $15 per hour by 2025 was introduced in the state Senate this year, but has yet to be moved from committee.

Another bill calling for a more bold increase of the minimum wage to $19.45 by July 1 of this year was introduced in the state House this past February, but has also not progressed.

Contact April Fisher at amfisher@freepressmedia.com. Follow her on Twitter: @AMFisherMedia