What is the current federal minimum wage per hour?

The federal minimum wage per hour is set at $7.25. This rate has been in effect since July 24, 2009, and it applies to most employees in the United States. The purpose of establishing a federal minimum wage is to ensure that workers earn a basic level of income, which aims to reduce poverty and provide a standard for wages across different states and industries.

While some states and localities have implemented higher minimum wages to account for the varying costs of living, the federal level serves as a baseline that employers must comply with. This foundational knowledge about minimum wage laws is crucial for payroll professionals, as it impacts calculations related to employee compensation and compliance with labor laws. Understanding this context around the federal minimum wage helps ensure that payroll practices are aligned with legal requirements.