Get Live Quote 
Montgomery County, Maryland will increase its minimum wage on July 1, 2026, based on a 2.0% CPI-W increase. The new rates vary by employer size: large employers (51+ employees) must pay $18.00/hour (up $0.35), mid-size employers (11-50 employees) must pay $16.50/hour (up $0.50), and small employers (10 or fewer employees) must pay $15.95/hour (up $0.45). This adjustment follows Montgomery County Code Section 27-68, which requires annual recalculation based on regional inflation.
Montgomery County, Maryland minimum wage increases to $18.00/hour for large employers on July 1, 2026
Montgomery County, Maryland will increase its minimum wage on July 1, 2026, following a 2.0% increase in the consumer price index for all urban wage earners and clerical workers (CPI-W) in the Washington, D.C.-Arlington-Alexandria area during 2025. The new rates vary by employer size, with large employers (51+ employees) required to pay $18.00/hour, mid-size employers (11–50 employees) required to pay $16.50/hour, and small employers (10 or fewer employees) required to pay $15.95/hour.
Who is affected
All employers operating in Montgomery County, Maryland are affected, with different minimum wage rates based on employee count:
- Large employers with 51 or more employees
- Mid-size employers with 11 to 50 employees
- Small employers with 10 or fewer employees
The employee count determines which tier applies to the entire organization.
What's changing
| Employer size | Current rate (until June 30, 2026) | New rate (from July 1, 2026) | Increase |
|---|---|---|---|
| Large (51+ employees) | $17.65/hour | $18.00/hour | $0.35/hour |
| Mid-size (11–50 employees) | $16.00/hour | $16.50/hour | $0.50/hour |
| Small (10 or fewer employees) | $15.50/hour | $15.95/hour | $0.45/hour |
All amounts are in USD.
Montgomery County Code Section 27-68, enacted in 2017, requires the minimum wage to be recalculated each March 1 based on the prior calendar year's change in the regional CPI-W. Until all three employer categories reach the same rate, small and mid-size employers receive an additional 1% annual adjustment on top of the inflation rate.
What NEO partners and clients should do
- By June 30, 2026: Update payroll systems to reflect the new minimum wage rates effective July 1, 2026
- Before July 1, 2026: Verify current employee counts to determine which employer size tier applies to your organization
- By July 1, 2026: Ensure all Montgomery County employees are paid at or above the applicable minimum wage rate for your employer size category
- Ongoing: Monitor employee count changes that may shift your organization into a different tier requiring a higher minimum wage
