Beginning January 1, 2021, the Montana minimum wage will increase to $8.75 per hour.
The minimum wage is determined by taking the current minimum wage of $8.65 and increasing it by the Consumer Price Index for Urban Consumers (CPI-U) increase from August of 2019 to August 2020. The CPI-U increased by 1.31 percent (unadjusted) over the year ending August 2020. To keep the minimum wage at the same purchasing power as the prior year, the wage should increase by $0.11 per hour. However, since state statute requires the wage to rounded to the nearest 5 cents, the 2021 minimum wage rate will be $8.75.