The minimum wage in Massachusetts will increase on Jan. 1. Here’s what you need to know.

Sunday pay will also start to be phased out for most retail workers.

Charlie Baker signs the "grand bargain" bill. –Gov. Charlie Baker's office

Starting Jan. 1, workers in Massachusetts making the minimum wage will begin to see a little more money in their paychecks.

The state’s minimum wage is set to rise over the next five years starting with a jump to $12 an hour this January, up from $11. Tipped workers will also see a bump up, from $3.75 to $4.35 an hour. Wages will increase gradually each year for the next five years, according to the state.

As wages go up each year, many retail workers can also expect to see a decrease in time-and-a-half pay, or 1.5 times their normal hourly wage, on Sundays over the next five years, also beginning on Jan. 1, 2019.

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Both of these laws will take full effect on Jan. 1, 2023, when the minimum wage reaches $15 per hour and time-and-a-half pay, or “Sunday premium pay,” is completely phased out.

These changes were part of what state lawmakers called the “grand bargain” bill, which Gov. Charlie Baker signed back in June. 

Here’s what to expect:

Minimum wage increases

  • Jan. 1, 2019: $12 standard minimum wage; $4.35 tipped minimum wage
  • Jan. 1, 2020: $12.75 standard; $4.95 tipped
  • Jan. 1, 2021: $13.50 standard; $5.55 tipped
  • Jan. 1, 2022: $14.25 standard; $6.15 tipped
  • Jan. 1, 2023: $15 standard; $6.75 tipped

Sunday pay phase out

  • Jan. 1, 2019: 1.4 times the hourly rate
  • Jan. 1, 2020: 1.3 times the hourly rate
  • Jan. 1, 2021: 1.2 times the hourly rate
  • Jan. 1, 2022: 1.1 times the hourly rate
  • Jan. 1, 2023: Phased out
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