Hawai‘i’s minimum wage has been rising steadily over the past several years, and another increase is just around the corner. These scheduled adjustments are an essential part of workforce planning, from budgeting and staffing to compliance and communication with employees.

If your organization hasn’t reviewed the upcoming changes yet, now is the time to prepare. Here’s a clear overview of what’s coming in 2026 and how it fits into Hawai‘i’s broader wage schedule.

Minimum Wage Will Increase to $16.00 per Hour

According to the State of Hawai‘i Department of Labor and Industrial Relations’ official Wage Standards Division notice (HWHL-1, Rev. 06/22), the minimum wage will increase to $16.00 per hour effective January 1, 2026. This rate will remain in effect through December 31, 2027.

This change follows earlier increases to:

  • $12.00 per hour (2022–2023)
  • $14.00 per hour (2024–2025)

These adjustments are part of Hawai‘i’s long-term plan to raise the minimum wage to $18.00 by 2028.

A Look Ahead to 2028

While 2026 is the next major milestone, it’s helpful for organizations to plan ahead. The same state notice outlines that Hawai‘i’s minimum wage will rise again to $18.00 per hour on January 1, 2028.

For many organizations, especially those with large hourly workforces or tight margins, phased planning can help prevent last-minute budget or staffing issues.

Tip Credit Changes (Current and Future)

For industries employing tipped workers, such as hospitality and food service, Hawai‘i’s tip credit rules also follow a phased schedule. Under the state’s Wage and Hour Law:

  • Tipped employees may currently be paid up to $1.25 less per hour (effective January 1, 2024).
  • The next increase occurs in 2028, when employers may apply a tip credit of up to $1.50 less per hour, but only when all eligibility requirements are met.

While these changes do not directly affect 2026, they are important for long-term planning, especially for organizations with a mix of tipped and non-tipped positions.

Why These Changes Matter for Hawai‘i Employers

Minimum wage adjustments affect much more than hourly pay. Local organizations should consider how the 2026 increase may influence:

  1. Payroll and Budget Planning

Higher minimum wages may create ripple effects across pay bands, overtime costs, and internal equity.

  1. Recruitment and Retention

As wages rise statewide, organizations should review market competitiveness to ensure compensation remains attractive—especially in Hawai‘i’s tight labor market.

  1. Compliance and Recordkeeping

Under Hawai‘i Wage and Hour Law, employers must maintain accurate time records and ensure all employees are paid at or above the state minimum wage when it exceeds federal requirements.

  1. Communication With Employees

Clear internal communication helps prevent confusion, improves morale, and reinforces trust.

How Bishop & Company Helps Organizations Navigate Workforce Changes

As wage laws evolve, many Hawai‘i organizations experience increased staffing pressures, especially when labor costs rise or departments need support during transitions. Our team can help organizations stay steady by providing:

  • Temporary, temp-to-hire, and direct-hire support
  • Administrative, IT, and Executive talent to maintain productivity
  • Workforce insights grounded in Hawai‘i’s unique labor market
  • Flexible coverage during periods of turnover or restructuring

Prepare Your Organization for 2026 and Beyond

Minimum wage changes are a certainty, and with Hawai‘i’s next increase scheduled for 2026, this is the ideal time for organizations to evaluate their staffing plans, budgets, and compensation strategies.

Bishop & Company is here to support your organization with local expertise and personalized staffing solutions as you prepare for the year ahead.