Virginia Minimum Wage Increases Through 2028

On April 8, 2026, Virginia enacted House Bill 1 (HB 1) as Chapter 350, amending Virginia Code § 40.1-28.10 to reset the state’s minimum wage schedule.

The law codifies Virginia’s $12.77 hourly minimum wage effective January 1, 2026, increases the rate to $13.75 effective January 1, 2027, raises it again to $15.00 effective January 1, 2028, and requires annual Consumer Price Index (CPI)-based adjustments beginning January 1, 2029.

This update applies to Virginia employers covered by the state minimum wage law, and the act’s general effective date is July 1, 2026.

What Employers Need to Do

• Confirm current pay rates for Virginia employees and ensure payroll systems are ready for the next scheduled increase to $13.75 on January 1, 2027.

• Budget for the 2028 increase to $15.00 per hour and plan for future annual adjustments beginning in 2029.

• Monitor annual announcements from the Commissioner of Labor and Industry starting on October 1, 2028, when the adjusted state hourly minimum wage will be set for the following January 1.

• Review multi-state payroll and wage notices to ensure Virginia rates are not overlooked where the federal minimum wage remains lower.

• Update compensation planning and internal guidance to reflect that Virginia’s future minimum wage will no longer remain fixed in statute after 2028.

Overview

Virginia amended § 40.1-28.10 of the Code of Virginia to establish a new minimum wage schedule for 2026 through 2028 and a CPI-based annual adjustment model beginning in 2029. The law increases the minimum wage incrementally to $15.00 per hour by January 1, 2028, and then moves to annual inflation-based adjustments.

Minimum Wage Schedule

• Virginia’s minimum wage is $12.77 per hour from January 1, 2026, until January 1, 2027, unless the federal minimum wage is higher.
• The minimum wage increases to $13.75 per hour from January 1, 2027, until January 1, 2028, unless the federal minimum wage is higher.
• The minimum wage increases again to $15.00 per hour from January 1, 2028, until January 1, 2029, unless the federal minimum wage is higher.

Inflation-Based Adjustments Beginning in 2029

• Beginning January 1, 2029, employers must pay the greater of the adjusted state hourly minimum wage or the federal minimum wage.
• By October 1, 2028, and annually thereafter, the Commissioner of Labor and Industry must set the adjusted state hourly minimum wage for the following 12-month period beginning January 1.
• The adjustment must be based on changes in the United States Average Consumer Price Index for all items, all urban consumers (CPI-U), and the annual adjustment cannot be less than zero.

“Greater Of” Structure

• The law keeps Virginia tied to whichever is higher: the state minimum wage set by Virginia law or the federal minimum wage.
• That means employers cannot assume the Virginia amount will always control if federal law changes in the future.
• For 2026 through 2028, the law uses this “greater of” language at each step of the new schedule.

Why This Matters

HB 1 matters because it gives Virginia a defined multiyear minimum wage schedule through 2028, while also shifting to annual inflation adjustments starting in 2029.

For employers, the biggest practical impact is planning. The next two scheduled increases are already set, but beginning in 2029, the minimum wage will no longer be a fixed amount and will instead change annually based on CPI-U.

That means employers should not treat the 2028 rate as the endpoint. Payroll systems, budgeting, and wage-rate reviews will need to account for future yearly adjustments announced by the Commissioner.

Key Risks for Employers

• Failing to prepare for the next scheduled increase to $13.75 on January 1, 2027. The current rate of $12.77 has been in effect since January 1, 2026, and employers should already be adjusting payroll systems for the upcoming change.

• Treating the $15.00 rate in 2028 as permanent and overlooking annual CPI-based adjustments beginning in 2029. After 2028, the minimum wage will be adjusted annually based on CPI-U, and the adjustment cannot be less than zero.

• Overlooking the “greater of” structure, which ties Virginia’s minimum wage to the federal minimum wage if federal law becomes higher. This means employers cannot assume the Virginia rate will always control and should monitor federal minimum wage activity as well.

• Failing to align budgeting and payroll administration with the Commissioner’s future annual minimum wage announcements. The adjusted rate must be set by October 1 each year for the following January 1.

Additional Information

The wage schedule begins with the January 1, 2026, rate of $12.77 and then moves to the next increases on January 1, 2027, and January 1, 2028.

Source References

• Virginia HB1 – Minimum wage; increases incrementally to $15.00 per hour by January 1, 2028.

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