ST. LOUIS — Missouri’s minimum wage will increase by 30 cents to $12.30 per hour beginning Jan. 1, 2024.

Since Prop B was passed by voters in 2018, the state’s minimum wage has been increasing by 85 cents per hour annually, which ends this year, according to the Missouri Department of Labor & Industrial Relations.

Beginning next year, the minimum wage may increase or decrease annually depending on cost-of-living changes reflected in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

All private businesses are required to pay the $12.30 hourly rate, except retail and services businesses whose gross annual sales are less than $500,000, according to the department.

The state’s minimum wage law does not apply to public employers and it does not allow for the minimum wage rate to be lower than the federal minimum wage rate.

Pay for tipped employees also must equal at least $12.30 per hour and employers are required to pay tipped employees at least 50% of the minimum wage, plus any amount necessary for the employee’s compensations to total a minimum of $12.30.

The current federal minimum wage is $7.25 per hour.

For more information about the minimum wage, click here.