Hourly PayWhat $7.25 an hour comes to
| Working time | Pay before tax |
|---|---|
| 8-hour day | $58.00 |
| 40-hour week | $290.00 |
| Month (one twelfth of a year) | $1,256.67 |
| Year (2,080 hours) | $15,080.00 |
Plain multiplication for a full-time worker paid for every hour, before tax and deductions. It is not a statement of what any employer pays.
How it compares
The median hourly wage of all employees in Alabama was $21.96 in May 2025 (Bureau of Labor Statistics): half earned more, half less. The $7.25 minimum is 33% of that median.
What the Department of Labor's table says about Alabama
- No state minimum wage law.
- Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.
Quoted from the Department's page as updated on 5 November 2026.
Before you rely on a rate
- Cities and counties in some states set their own, higher minimum wage. This page shows the state entry only.
- Workers who receive tips, young workers, trainees and some small employers can come under different rates or exemptions.
- Where a state rate and the federal rate both apply, the worker is entitled to the higher one.
- Rates are usually changed on 1 January or 1 July. Check the date at the top of this page.
Common questions
What is the minimum wage in Alabama?
Employers covered by federal law must pay the federal minimum wage of $7.25 an hour. The state has no minimum wage law of its own.
How much is Alabama minimum wage for a full-time year?
$7.25 an hour for 2,080 hours comes to $15,080 before tax.
Source: U.S. Department of Labor, Wage and Hour Division, "State Minimum Wage Laws", page updated 5 November 2026; checked in November 2026. Rates change, often on 1 January or 1 July, and some cities and counties set higher rates of their own. This is general information, not legal advice: confirm the rate that applies to you with your state labour office or at dol.gov.