What Is the Minimum Wage in Salem, Oregon?

Salem, Oregon, uses the state’s standard minimum wage rate. From July 1, 2026, through June 30, 2026, that rate is $15.05 per hour. Salem is not in the Portland metropolitan area, where a higher rate applies, and it does not qualify for Oregon’s lower nonurban rate. The rate can change each July, so workers and employers should check the current Oregon Bureau of Labor and Industries (BOLI) schedule when reviewing pay.

Salem’s Minimum Wage Rate

Oregon sets minimum wages in three geographic tiers: Portland metro, standard, and nonurban. The correct rate depends on where an employee performs the work, not simply where the employer’s headquarters or the employee’s home is located. For work performed in Salem, the standard rate is $15.05 an hour for the 12-month period beginning July 1, 2026.

These rates are Oregon’s minimums for the specified period. The federal minimum wage is $7.25 per hour, but employers covered by both federal and state law generally must pay the higher applicable rate. Because Oregon’s rates are higher, the state rate governs for most covered work in Salem.

Why Salem Uses the Standard Rate

Oregon’s geographic system places the Portland metro area above the standard rate and designated nonurban counties below it. Salem is outside the Portland metro wage area and is not in the group of counties assigned the nonurban rate. As a result, the standard statewide rate applies to work performed in Salem.

For employees who work in more than one location, the work location matters. A person might perform some shifts in Salem and others in a Portland-area location with a different minimum wage. Employers should identify where each hour is worked and apply the rate required for that location. For unusual or multijurisdictional schedules, BOLI can provide guidance.

When Does the Salem Minimum Wage Change?

Oregon updates its minimum wage rates annually on July 1. The state’s standard rate is adjusted based on inflation, using the change in the Consumer Price Index specified by Oregon law. The Portland metro and nonurban rates are set in relation to the standard rate under the state’s tiered system.

That means $15.05 is not a permanent rate. It applies from July 1, 2026, through June 30, 2026. A new rate takes effect on July 1, 2026, and should be confirmed through BOLI’s official minimum wage information rather than assumed from an older article or pay stub. Employers must update pay when a new rate takes effect if an employee’s hourly wage falls below the applicable minimum.

How Much Is $15.05 an Hour in a Paycheck?

At exactly the standard minimum wage, a person working 40 hours each week for 52 weeks would earn $602 per week and about $31,304 per year before taxes and deductions. This estimate assumes steady hours, no unpaid time off, and no overtime. Actual take-home pay is lower after applicable taxes, insurance premiums, retirement contributions, or other lawful deductions.

For a 20-hour workweek, the same hourly rate produces $301 in gross weekly wages, or about $15,652 over 52 weeks. These examples use the minimum hourly rate and do not include overtime premiums or other forms of compensation. They are gross-pay estimates, not a guarantee of a particular paycheck amount.

Does Oregon Allow Employers to Pay Less to Tipped Workers?

No. Oregon does not allow employers to count tips toward the minimum wage. A tipped employee in Salem must receive at least the applicable minimum wage from the employer for every hour worked, in addition to any tips the employee keeps. This is often called a no tip credit rule.

For example, a restaurant cannot reduce an employee’s cash wage below $15.05 per hour during this rate period on the grounds that customers may leave tips. Tips are additional earnings, subject to applicable rules on tip ownership and pooling. Employees with questions about tip practices can consult BOLI’s wage and hour guidance.

Are There Different Minimum Wages for Young Workers or Training Periods?

Oregon generally does not set a separate, lower minimum wage for employees simply because they are under 18 or are new to a job. A covered employee working in Salem is generally entitled to the same applicable minimum wage as other employees. Calling a position an internship, probationary period, training shift, or trial shift does not by itself remove wage obligations.

There are narrow exceptions under wage and hour law, and some workers or employers may be covered by special rules. Those exceptions depend on the facts and the applicable statute or regulation. An employer should not assume that a worker can be paid less based only on age, job title, or limited experience.

Who Is Covered by the Minimum Wage?

Oregon’s minimum wage generally applies to employees covered by state wage law. It is not limited to full-time workers: part-time, seasonal, and temporary employees are usually entitled to at least the applicable hourly minimum for hours worked. The legal classification of a worker matters. A business cannot avoid wage requirements simply by labeling an employee an independent contractor; classification depends on the actual working relationship and legal tests.

Some occupations and circumstances may be exempt from minimum wage requirements under federal or state law. Exemptions can be technical and may depend on both job duties and compensation. A salary alone does not automatically make a worker exempt, and an employee who believes an exemption has been applied incorrectly can seek advice from BOLI or a qualified employment professional.

Minimum Wage Is Not the Same as Overtime Pay

Minimum wage sets the lowest hourly pay allowed for covered work. Overtime is a separate requirement. In general, Oregon employees must receive overtime pay at one and one-half times their regular rate for hours worked over 40 in a workweek, unless a specific exemption applies. At a regular rate of $15.05, the basic overtime rate would be $22.575 per hour, commonly rounded according to payroll practices, before considering special calculations or other compensation that may affect the regular rate.

Overtime is generally calculated by workweek, not by averaging hours across multiple weeks. Employers should keep accurate records of hours worked and pay. Employees who work extra hours should review their pay statements and time records, particularly if a salary, piece-rate, commission, or multiple-pay-rate arrangement is involved.

Can a City or County Set a Higher Minimum Wage?

Oregon state law establishes the wage tiers that apply across the state, including Salem. Salem does not have a separate city minimum wage that replaces the state standard rate. Local wage rules can differ in other states, so information about a city minimum wage elsewhere should not be assumed to apply in Salem.

Government contracts, collective bargaining agreements, or particular funding programs may require compensation above the general minimum wage. Those terms can create additional obligations, but they do not lower the state minimum. Workers should check any applicable contract or labor agreement as well as the state rate.

What Employers in Salem Should Do

Employers should identify the correct wage tier for each work location, check the effective dates, and update payroll before a new rate begins. For the July 1, 2026–June 30, 2026 period, the standard rate for Salem is $15.05 per hour. Payroll systems should account for all hours worked, including required training time and other compensable work time, and should not deduct tips from the minimum wage owed.

• Review hourly pay: Confirm that every covered employee receives at least the applicable rate for each hour worked.
• Check work locations: Apply the correct geographic rate when employees work in more than one Oregon area.
• Prepare for July 1: Verify the new annual rate and update payroll and workplace notices as required.
• Keep records: Maintain accurate records of hours, wages, and deductions.
• Review special rules: Check overtime, tip, contract, and exemption requirements separately.

What Employees Can Do If They Are Paid Less

An employee who believes wages are below the required minimum can start by reviewing pay statements, schedules, time records, and the locations where the work was performed. Keeping copies of these records can help clarify the hours worked and the amount paid. The employee can raise the issue with payroll or management, preferably in writing, and request a correction.

If the problem is not resolved, Oregon BOLI accepts wage complaints and provides information about workplace rights. Federal wage questions may also be directed to the U.S. Department of Labor’s Wage and Hour Division. Filing deadlines and available remedies depend on the claim, so employees should seek official guidance promptly rather than waiting.

Official Sources for Oregon Minimum Wage Information

The most reliable place to confirm the current Salem rate is the Oregon Bureau of Labor and Industries minimum wage page, which lists the annual rates and geographic areas. BOLI’s employer minimum wage information covers employer responsibilities. Federal wage information is available from the U.S. Department of Labor.

Bottom line: For work performed in Salem, Oregon, the standard minimum wage is $15.05 per hour from July 1, 2026, through June 30, 2026. Oregon’s rate changes annually on July 1, so the official BOLI schedule should be checked for work performed after that date.