Vermont sets one of the more generous minimum wages in New England, with a current rate of $14.01 per hour, effective January 1, 2025. Unlike many US states that require legislative action to raise the wage floor, Vermont uses an automatic CPI-indexing mechanism under 21 V.S.A. section 384, meaning the rate rises each January 1 in step with Northeast regional inflation. This calculator converts the Vermont minimum — or any higher wage you enter — into the three numbers that matter most for household budgeting: weekly gross pay, monthly gross pay and annual gross salary, with FLSA overtime automatically included whenever you work more than 40 hours a week.
How it works
Enter your hourly wage (pre-filled at $14.01) and your average hours per week. The calculator splits your working hours into two buckets:
- Regular time — the first 40 hours at your straight-time rate.
- Overtime — any hours beyond 40, rated at 1.5 times your regular rate as required by FLSA Section 7(a)(1) and observed by all Vermont employers.
Weekly gross = (regular hours x wage) + (overtime hours x wage x 1.5).
Monthly gross is then weekly x 52 / 12, giving the exact calendar average. Annual gross is weekly x 52. Everything runs in your browser — no figures are uploaded or stored.
Worked example
Suppose you work 45 hours per week at Vermont’s minimum wage of $14.01 per hour:
| Metric | Calculation | Result |
|---|---|---|
| Regular pay | 40h x $14.01 | $560.40 |
| Overtime pay | 5h x $21.015 (1.5x) | $105.08 |
| Weekly gross | $560.40 + $105.08 | $665.48 |
| Monthly gross | $665.48 x 52 / 12 | $2,883.75 |
| Annual gross | $665.48 x 52 | $34,604.96 |
At a straight 40 hours per week with no overtime, Vermont’s $14.01 minimum yields a weekly gross of $560.40, a monthly gross of $2,428.40, and an annual gross of $29,140.80 — before any state or federal income tax, Social Security or other withholdings.
Compare that to the federal minimum of $7.25/hr at 40h/wk, which produces only $15,080.00 a year. Working at Vermont’s state minimum therefore puts roughly $14,061 more in a full-time worker’s pocket annually than the federal floor alone would require — a concrete measure of how much Vermont’s indexing policy shifts real income.
Vermont minimum wage in context
Vermont’s CPI-indexed approach provides stability for low-wage workers that most US states do not offer. Since 2014 Vermont has raised its minimum wage each year without requiring a separate legislative vote. The 2025 rate of $14.01 builds on $13.67 (2024), $13.18 (2023) and $12.55 (2022), reflecting consistent annual increases of roughly 3-6 percent.
Vermont’s tipped wage stands at $6.84/hr (2025) — exactly half the standard minimum wage, by statute. Tipped employees in restaurants, hotels and other service industries may be paid this lower cash rate, but only if their tips bring the effective hourly rate to at least $14.01. If tips fall short in any given workweek, the employer must make up the gap. This “tip credit” structure mirrors the federal approach but applies Vermont’s higher base.
Vermont’s minimum wage applies to most private-sector employers. Very small employers (fewer than two employees) were historically subject to a different schedule, but current Vermont law has converged these tracks. Agricultural workers, certain student learners and disabled workers under special certificates may be subject to different rules. When in doubt, the Vermont Department of Labor (labor.vermont.gov) is the authoritative source.
Use this calculator to model any scenario — for instance, whether a job offer at $16/hr versus $18/hr changes your monthly budget, or how a few overtime hours each week changes your annual total. Paste the copied breakdown directly into a spreadsheet or share it when negotiating pay.