What Is The Minimum Wage in Texas?

Minimum wage is a hot topic in the state of Texas and throughout the country. The conversation around minimum wage is focused on whether or not states need to increase the minimum wage so employees can have a liveable wage and make progress financially. The federal government has established a baseline minimum wage that states have to be at or above. The federal minimum wage is $7.25 per hour and was put into effect on July 24, 2009. The last time Texas increased minimum wage was in 2009 in response to the increased federal minimum wage. Before the bump to $7.25 per hour, the minimum wage in Texas was $6.55. Currently, It is estimated that around 200,000 Texans make minimum wage. Proponents of raising the minimum wage are fighting to bump the rate up to $15.00 per hour. 

If you make minimum wage or a wage between $7.25 and the proposed $15.00 per hour, this topic is likely of great interest to you. However, it can be difficult to keep up with all of the information that is coming out in relation to the minimum wage in Texas. You do not have to watch every debate and read every news article on the topic of minimum wage in Texas to keep up with what is happening. Getting answers to a few core questions will help you get up to date on what is happening with the minimum wage in Texas. 

Is the minimum wage in Texas going up this year? 

When it comes down to it, anyone who is currently making minimum wage would like to know if and when that number is going up. In Texas, there are no immediate plans to raise the minimum wage. However, there are lawmakers in both the Texas and federal government that are attempting to get the minimum wage bumped up. In Texas, there is a bill that has been introduced to incrementally raise the minimum wage until it reaches $15.00 per hour by the year 2025. The proposed bill is Texas House Bill 1827. Lawmakers in the federal government are attempting to raise the federal minimum wage in much the same way. Lawmakers are calling the federal plan the ‘Raise the Wage Act of 2021.’ In the federal plan the minimum wage will be increased incrementally until it reaches $15.00 per hour by 2025. Neither plan has been turned into law at this point. If the Texas bill passes, workers will see the first bump in pay in 2022. It is not likely that the minimum wage in Texas will go up this year but state and federal lawmakers are working to get the minimum wage increased over the next few years. 

How much will I earn working a minimum wage job in Texas? 

The debate about raising the minimum wage in Texas centers around the idea that it is difficult – if not impossible – to live on minimum wage. In Texas, the average income for one person is $31,277. On minimum wage, working 40 hours per week, you can expect to earn $15,080 per year before taxes. This breaks down to $1,256 per month and $290.00 per week. If you are single with no dependents you can expect to bring home around $1,138.00 per month after taxes. The exact amount of taxes you pay may be different if you are married or have dependents. Many of the jobs that pay minimum wage in Texas are in the service industry and include jobs like cleaning, landscaping, general labor, waiting tables, and performing other tasks in restaurants. 

Are there some jobs that pay more than minimum wage in Texas? 

Living solely on the income you make at a minimum wage job can be extremely difficult. And, since it is going to take time for the minimum wage to increase, there will not be major changes to that number in the immediate future. Fortunately, there are a number of places in Texas that pay more than the minimum wage. Many of these places offer higher per hour pay even for entry level positions. Below are a few examples of jobs that pay more than minimum wage in Texas. 

Buc-ee’s $12.00 plus per hour

Buc-ee’s is a convenience and retail store. There are 39 locations and counting of Buc-ee’s throughout the United States – the majority of those are in Texas. Buc-ee’s is transparent about what they pay and often post the pay for various positions on signs at their locations. 

WalMart $11.00 plus per hour

Walmart is a mega-retailer that employees thousands of people throughout Texas. The starting rate for an entry-level cashier at WalMart is $11.00 per hour. The per hour pay goes up from there as you move up through the various positions in the organization. 

Target $15.00 plus per hour

In 2020, Target raised the starting minimum wage for employees to $15.00 per hour. Target also gave team members a temporary per hour bump during the pandemic and gave out one-time bonuses to employees who worked during the pandemic. You can apply for a job at Target online.

Other companies you can explore that pay more than the Texas minimum wage include Sam’s, Costco, QT, IKEA, and Whole Foods Market. 

The Secret To Finding A Higher Paying Job In Texas

Living on the Texas minimum wage can be difficult – even if you are getting 40 hours of work per week. The potential increase in the minimum wage provides some hope for people who work hourly. However, the fact that it will take years to incrementally increase the minimum wage means that you may need to look for employment at a company that already offers more than $7.25 per hour. There are a number of companies that are not waiting on the federal or state government to tell them to increase wages. These companies decided to bump up the starting wages on their own. Instead of waiting for the minimum wage to change through legislation, you can consider finding a job at one of the many companies in Texas that have already increased entry-level pay.