Montgomery County Minimum Wage to Increase on July 1 for Large, Mid-Size, and Small Employers

For Immediate Release: Friday, February 27, 2026

The Montgomery County minimum wage will increase on July 1 to reflect the region’s inflation rate, as required by County law. For large employers (with 51 or more employees), the minimum wage will increase by 35 cents to $18.00 per hour. For mid-size employers (with 11-50 employees), the minimum wage will increase by 50 cents to $16.50 per hour. For small employers (10 or fewer employees), the rate will increase by 45 cents to $15.95 per hour.

These adjustments are based on a 2.0 percent increase in the consumer price index for all urban wage earners and clerical workers in the Washington, D.C.-Arlington-Alexandria area in 2025. The annual increase ensures the local minimum wage keeps pace with inflation.

“This minimum wage adjustment reflects our commitment to building an economy that works for everyone,” said Montgomery County Executive Marc Elrich. “When wages keep pace with inflation, working people aren’t forced to fall behind as everyday costs rise. Ensuring fair pay strengthens families, stabilizes our workforce, and supports small businesses that rely on local spending. Tying the minimum wage to inflation creates predictability for employers and workers alike and reinforces our shared goal of a more equitable and sustainable economy. At a time when federal policies allow billionaires to grow wealthier by the minute, I am proud that Montgomery County’s law ensures the earnings of our community’s lowest-paid workers at least keep pace with inflation.”

The change in the minimum wage rate will help employees of covered large employers earn approximately $14 more for every 40 hours worked, an additional $728 in earnings per year; mid-size employers approximately $20.00 more for every 40 hours worked, an additional $936 in earnings per year; and small employers $18.00 more for every 40 hours worked, an additional $1,040 in earnings per year.

Enacted in 2017 through legislation sponsored by then-County Council Member and current County Executive Marc Elrich, Section 27-68 of the County Code mandates that the minimum wage rate be recalculated each March 1 based on the change in the regional consumer price index from the prior calendar year. Until the minimum wage rate for all three categories of employers is the same, the law requires an additional annual adjustment to the inflation rate of one percent for small and mid-size employers. 

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Release ID: 26-075
Media Contact: Mary Anderson 301-529-7669
Categories: Executive Office