--- title: Missouri Ends CPI-Based Minimum Wage Hikes After 2026 description: Uncover the current missouri minimum wage status in 2025 and see what causes led Missouri to roll back future hikes and what this means for businesses and workers. image: https://blog.axcethr.com/hubfs/Missouri-Min-Wage-_1200-x-628-px_%20(1).webp --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - 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- - - [whatsapp://send?text=https://blog.axcethr.com/missouri-minimum-wage](whatsapp://send?text=https://blog.axcethr.com/missouri-minimum-wage) - [mailto:?subject=Missouri%20Ends%20CPI-Based%20Minimum%20Wage%20Hikes%20After%202026&body=https://blog.axcethr.com/missouri-minimum-wage](mailto:?subject=Missouri%20Ends%20CPI-Based%20Minimum%20Wage%20Hikes%20After%202026&body=https://blog.axcethr.com/missouri-minimum-wage) ![Missouri-Min-Wage (1)](https://blog.axcethr.com/hs-fs/hubfs/Missouri-Min-Wage%20(1).webp?width=1200&height=800&name=Missouri-Min-Wage%20(1).webp) In recent years, Missouri has taken the lead on raising the minimum wage—well ahead of the unchanged federal rate of $7.25 per hour. Most recently, in November 2024, Missouri voters approved Proposition A, a ballot measure designed to increase the state minimum wage to $15 per hour by 2026 and tie future increases to inflation beginning in 2027. Proposition A also introduced a new paid sick leave mandate, requiring most private employers to provide one hour of paid sick time for every 30 hours worked, paid at the employee’s regular rate. Together, these measures represented one of the most ambitious worker protection expansions in Missouri’s recent history. But that trajectory has now shifted. In July 2025, Missouri enacted legislation repealing key portions of Proposition A—halting future cost-of-living wage increases and ending the state’s paid sick leave law, effective August 28, 2025. [![Ingram's CTA Image Jeanette Coleman Q&A Company Culture](https://no-cache.hubspot.com/cta/default/2652187/interactive-191229619848.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLI9XmLBLH%2B0zSX%2B4xU8LMLrTvBVqR4OXvH46Snm6BAa5yxU9qCtOy2ImW%2FS%2FnLA27Rn6ZmjbcgvmVwSr0fZXbmD%2FEddhyFXlOQOoJFYtDoyu9ytLcYKINXMuPtH8HwloPz4qcG%2FZOh%2F9vznIGndFWfwuye9B0%2F%2BqgXEMUeInIOavN8JIMx5P%2Bhw9hAYL%2F8zU2zewIp0mpau&webInteractiveContentId=191229619848&portalId=2652187) ## The Rise of Minimum Wage in Missouri [Missouri’s broader wage growth](https://labor.mo.gov/dls/minimum-wage) began with Proposition B in 2018, which raised the minimum wage to $8.60 in 2019 and added $0.85 per year until the rate reached $12 in 2023. The current statewide minimum wage—$13.75 per hour—took effect on January 1, 2025 and will rise to $15 per hour in 2026, as originally planned. ### The Repeal of Proposition A In April 2025, the Missouri Supreme Court upheld Proposition A, confirming Missouri’s minimum wage increase to $15 per hour starting January 1, 2026. On July 10, 2025, Missouri Governor Mike Kehoe signed [HB 567](https://documents.house.mo.gov/billtracking/bills251/hlrbillspdf/1616H.05T.pdf?ej9os0sg3t), officially repealing Proposition A. The repeal takes effect on August 28, 2025. While the minimum wage will still increase to $15 per hour in 2026, the annual inflation-based increases originally scheduled to begin in 2027 will no longer occur. ## Paid Sick Leave Requirements Still Apply (for Now) Employers must continue to provide paid sick leave benefits under Proposition A through August 27, 2025. After that date, the statewide paid leave requirement will be eliminated as part of the signed repeal. RELATED: [Missouri Paid Sick Leave Law Repealed - Changes Take Effect August 28 >>](https://blog.axcethr.com/missouri-paid-sick-leave-law-repealed) ## What About the Federal and Kansas Minimum Wages? At the federal level, Missouri Sen. Josh Hawley and Vermont Sen. Peter Welch introduced a bill in mid-June 2025 to raise the federal minimum wage to $15 per hour. However, the current federal minimum remains at $7.25 per hour—unchanged since 2009. Kansas’ minimum wage also matches the federal rate at $7.25, and the state has not announced any plans to change it. Employers operating in both Missouri and Kansas should be mindful of the differences. [![HR compliance services for small businesses from Axcet HR Solutions](https://no-cache.hubspot.com/cta/default/2652187/interactive-189255892628.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLX7L1Xyb3S96ZxlqEKoGMhSZgcQ7RtA0skzs669PYdL93Pu0ybDDnmN9AAg2rfSSZaMTIa5e3l8wNY0I%2FteGYMrYAW%2B11oMiZq%2BwDRHeIpkg6TgoSzB%2FZaC41cjsQ4xAFOj7zUHsY2e%2BR6UIyolYoA3gbet1DXId8YFFmjn6LLYOhWMbjGk2oZloUJ6s3IXweMI5I9XgsXD9A8rtaqJ2QAZjPLUjZq5R%2BtHn5l94H1mDtB7Y6I%2Fm7Qe%2FBynNtIlsGPceutPQVWedhPMml%2BEX%2Fp7Bax2w%3D%3D&webInteractiveContentId=189255892628&portalId=2652187) ## Small Business Exemptions Still Apply Most Missouri employers will still be required to raise employee pay to $15 per hour in 2026 under the law, despite the repeal of future increases. However, some small businesses remain exempt from Missouri’s minimum wage requirements. ### Who Qualifies for the Exemption? Retail or service employers with annual gross income under $500,000 are not subject to the state minimum wage law. According to the [Missouri Department of Labor](https://labor.mo.gov/dls/minimum-wage), these businesses have the discretion to set their own pay rates—though federal wage laws may still apply depending on the nature of the business and its employees.  ### Should You Still Increase Wages Anyway? Even if your business qualifies for an exemption, it’s wise to evaluate the potential impact of paying below the prevailing rate. Competitive wages can play a key role in attracting and retaining talent, especially in a tight labor market. RELATED: [Is Your Employee Compensation Plan Competitive >>](https://blog.axcethr.com/is-your-employee-compensation-plan-competitive) ## Final Thoughts for Missouri Employers Missouri’s minimum wage landscape has shifted significantly in a short period. While the increase to $15 per hour in 2026 is locked in, the CPI-based hikes and statewide paid leave requirements have been repealed. Employers must comply with the law by August 27 and make policy adjustments moving forward. If you're an Axcet client, you don’t have to navigate these changes alone. Our certified HR and [payroll experts](https://www.axcethr.com/services/payroll-and-tax-administration-services/) are here to help you stay compliant and confident. Reach out to your dedicated consultant with any questions. Not yet an Axcet client? Learn more about our certified [PEO services](https://www.axcethr.com/services/) or [schedule a consultation today >>](https://www.axcethr.com/schedule-consultation/) [![See if a PEO makes sense for your business](https://no-cache.hubspot.com/cta/default/2652187/18caba7b-fa27-458e-b41c-5af2422700be.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/18caba7b-fa27-458e-b41c-5af2422700be) [![Mariah Collins, SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Mariah_DSC6768-Edit.jpg?width=80&height=80&name=Mariah_DSC6768-Edit.jpg)](https://blog.axcethr.com/author/mariah-collins) Written by #### [Mariah Collins, SHRM-SCP](https://blog.axcethr.com/author/mariah-collins) Mariah Collins, SHRM-SCP, is a Human Resources Consultant at Axcet HR Solutions, specializing in people management, process improvement, and project management. With a strong background in payroll, benefits, and employee relations, she brings over four years of experience in providing HR solutions to small businesses. Mariah holds a Bachelor of Business Administration in Human Resources from Emporia State University and is known for her expertise in helping businesses streamline HR processes while ensuring compliance. Her contributions to the Axcet blog reflect her deep understanding of HR challenges and her commitment to supporting small business owners. Read more [View all posts →](https://blog.axcethr.com/author/mariah-collins) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services HR Compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/) #### [Comprehensive Business Guide to Missouri’s Paid Sick and Safe Time Law ![New Missouri Paid Sick Leave Law](https://blog.axcethr.com/hubfs/New-Missouri-Paid-Sick-and-Safe-Time-Law%20(1).webp)](https://blog.axcethr.com/missouri-paid-sick-and-safe-time-law) #### [![Axcet HR Solutions Director of HR discussing the Missouri Paid Sick Leave Law that has been repealed](https://blog.axcethr.com/hubfs/Missouri-Paid-Sick-Leave-Repealed-_1200-x-628-px_%20(1).webp) Missouri Paid Sick Leave Law Repealed: Changes Take Effect August 28](https://blog.axcethr.com/missouri-paid-sick-leave-law-repealed) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Mariah Collins, SHRM-SCP", "url" : "https://blog.axcethr.com/author/mariah-collins" }, "dateModified" : "2025-08-05T17:57:27.733Z", "datePublished" : "2025-07-15T13:00:00.000Z", "headline" : "Missouri Ends CPI-Based Minimum Wage Hikes After 2026", "image" : [ "https://blog.axcethr.com/hubfs/Missouri-Min-Wage-_1200-x-628-px_%20(1).webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/missouri-minimum-wage", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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Most recently, in November 2024, Missouri voters approved Proposition A, a ballot measure designed to increase the state minimum wage to $15 per hour by 2026 and tie future increases to inflation beginning in 2027. Proposition A also introduced a new paid sick leave mandate, requiring most private employers to provide one hour of paid sick time for every 30 hours worked, paid at the employee’s regular rate. Together, these measures represented one of the most ambitious worker protection expansions in Missouri’s recent history. But that trajectory has now shifted. In July 2025, Missouri enacted legislation repealing key portions of Proposition A—halting future cost-of-living wage increases and ending the state’s paid sick leave law, effective August 28, 2025. The Rise of Minimum Wage in Missouri Missouri’s broader wage growth began with Proposition B in 2018, which raised the minimum wage to $8.60 in 2019 and added $0.85 per year until the rate reached $12 in 2023. The current statewide minimum wage—$13.75 per hour—took effect on January 1, 2025 and will rise to $15 per hour in 2026, as originally planned. The Repeal of Proposition A In April 2025, the Missouri Supreme Court upheld Proposition A, confirming Missouri’s minimum wage increase to $15 per hour starting January 1, 2026. On July 10, 2025, Missouri Governor Mike Kehoe signed HB 567, officially repealing Proposition A. The repeal takes effect on August 28, 2025. While the minimum wage will still increase to $15 per hour in 2026, the annual inflation-based increases originally scheduled to begin in 2027 will no longer occur. Paid Sick Leave Requirements Still Apply (for Now) Employers must continue to provide paid sick leave benefits under Proposition A through August 27, 2025. After that date, the statewide paid leave requirement will be eliminated as part of the signed repeal. RELATED: Missouri Paid Sick Leave Law Repealed - Changes Take Effect August 28 >> What About the Federal and Kansas Minimum Wages? At the federal level, Missouri Sen. Josh Hawley and Vermont Sen. Peter Welch introduced a bill in mid-June 2025 to raise the federal minimum wage to $15 per hour. However, the current federal minimum remains at $7.25 per hour—unchanged since 2009. Kansas’ minimum wage also matches the federal rate at $7.25, and the state has not announced any plans to change it. Employers operating in both Missouri and Kansas should be mindful of the differences. Small Business Exemptions Still Apply Most Missouri employers will still be required to raise employee pay to $15 per hour in 2026 under the law, despite the repeal of future increases. However, some small businesses remain exempt from Missouri’s minimum wage requirements. Who Qualifies for the Exemption? Retail or service employers with annual gross income under $500,000 are not subject to the state minimum wage law. According to the Missouri Department of Labor, these businesses have the discretion to set their own pay rates—though federal wage laws may still apply depending on the nature of the business and its employees. Should You Still Increase Wages Anyway? Even if your business qualifies for an exemption, it’s wise to evaluate the potential impact of paying below the prevailing rate. Competitive wages can play a key role in attracting and retaining talent, especially in a tight labor market. RELATED: Is Your Employee Compensation Plan Competitive >> Final Thoughts for Missouri Employers Missouri’s minimum wage landscape has shifted significantly in a short period. While the increase to $15 per hour in 2026 is locked in, the CPI-based hikes and statewide paid leave requirements have been repealed. Employers must comply with the law by August 27 and make policy adjustments moving forward. If you're an Axcet client, you don’t have to navigate these changes alone. Our certified HR and payroll experts are here to help you stay compliant and confident. Reach out to your dedicated consultant with any questions. Not yet an Axcet client? Learn more about our certified PEO services or schedule a consultation today >>", "author" : { "@id" : "https://blog.axcethr.com/author/mariah-collins#author", "@type" : "Person", "name" : "Mariah Collins, SHRM-SCP", "url" : "https://blog.axcethr.com/author/mariah-collins" }, "dateCreated" : "2025-07-15", "dateModified" : "2025-08-05", "datePublished" : "2025-07-15", "description" : "In recent years, Missouri has taken the lead on raising the minimum wage—well ahead of the unchanged federal rate of $7.25 per hour. Most recently, in November 2024, Missouri voters approved Proposition A, a ballot measure designed to increase the state minimum wage to $15 per hour by 2026 and tie future increases to inflation beginning ...", "editor" : "Mariah Collins, SHRM-SCP", "genre" : "Human Resources and Employee Management", "headline" : "Missouri Ends CPI-Based Minimum Wage Hikes After 2026", "image" : "https://2652187.fs1.hubspotusercontent-na1.net/hubfs/2652187/Missouri-Min-Wage-_1200-x-628-px_%20%281%29.webp", "keywords" : "Human Resources, HR Compliance, missouri minimum wage, when does Missouri's new minimum wage take effect, when does Missouri minimum wage increase, when does Missouri minimum wage go up, minimum wage in Missouri, kansas city missouri minimum wage", "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/missouri-minimum-wage", "@type" : "WebPage" }, "publisher" : { "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hs-fs/hubfs/axcethr_logo_white.png?width=225&name=axcethr_logo_white.png" }, "name" : "Axcet HR Solutions" }, "url" : "https://blog.axcethr.com/missouri-minimum-wage", "wordCount" : "4242" } ``` ```json { "@context" : "https://schema.org", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.axcethr.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/", "name" : "Insights", "position" : 2 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/tag/human-resources", "name" : "Human Resources", "position" : 3 }, { "@type" : "ListItem", "item" : "https://blog.axcethr.com/missouri-minimum-wage", "name" : "Missouri Ends CPI-Based Minimum Wage Hikes After 2026", "position" : 4 } ] } ```