Alaska Minimum Wage to Increase to $9.84 in 2018 - P.O.W. Report

Saturday, December 16, 2017

Alaska Minimum Wage to Increase to $9.84 in 2018

JUNEAU, Alaska— The Alaska minimum wage will increase from $9.80 to $9.84 in 2018. A ballot initiative passed by voters raised the minimum wage by a dollar in both 2015 and 2016, and thereafter to be adjusted annually for inflation.

Alaska Statute 23.10.065(a) requires the Alaska minimum wage to be adjusted using the Consumer Price Index for urban consumers in the Anchorage metropolitan area (Anchorage CPI-U) for the preceding calendar year. The Anchorage CPI-U increased 0.4 percent in 2016, rising from 216.909 to 217.830. As a result, the minimum wage will rise from $9.80 to $9.84 effective January 1, 2018.

“These modest annual adjustments ensure low wage workers don’t have to wait for several years to see their wages raised to keep up with inflation,” said Labor Commissioner Heidi Drygas.

The Alaska minimum wage applies to all hours worked in a pay period regardless of how the employee is paid: whether by time, piece, commission, or otherwise. All actual hours worked in a pay period multiplied by the Alaska minimum wage is the very least an employee can be compensated by an employer. Tips do not count toward the minimum wage.

More information about Alaska’s wage laws can be found at:

I've never had this question answered, "if the CPI has a decrease does that mean that the minimum wage will also go down?" It seems like there is an assumption that the CPI will always go up...and to be fair the data seems to prove this assumption correct.

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