Minimum Wage In Arizona

One of the numerous states that have enacted legislation to progressively raise the minimum wage is Arizona. This is a crucial subject for the state’s entrepreneurs. It’s crucial for you as an employer to stay current with these changes to ensure that you’re giving your staff the minimum wage mandated by law. This article comprises a prepared summary of Arizona’s minimum wage as well as suggestions on how to budget for them.

Minimum Wage In Arizona

What is The Minimum Wage In Arizona? 

Since January 1, 2022, Arizona’s minimum wage has risen to $12.80 per hour from $12.15. In comparison to the federal minimum wage, this will be $1.55 greater. The minimum wage in some Arizonan localities is rising more quickly than in the states. For instance, Tucson and Flagstaff are increasing their hourly minimum salaries to $15. 

Arizona’s minimum wage was set according to a plan stated in the Fair Pay and Healthy Families Act of 2016, although many states increased their minimum wages to match inflation or the cost of living.

According to the 2016 constitutional amendment, Arizona’s minimum wage was raised to $12 in 2020, $12.15 in 2021, and then $12.80 in 2022. Beginning from 2023, Arizona’s minimum wage will be adjusted for inflation and cost of living.

Will Arizona’s minimum wage someday rise to $15? 

It’s already coming closer in some areas of the state. In keeping up with other communities throughout the nation that have enacted legislation to reach a $15 minimum wage, Flagstaff has passed the legislation that would see it reach a $15.50 minimum wage by 2022. After that, Arizona’s minimum wage will increase in accordance with inflation. 

How to get ready for minimum wage changes as an Arizona company owner 

It’s best to get ready as the minimum wage in Arizona is expected to rise over the next few years. The following items should be on your to-do list if you want to prevent the common errors new business owners make: 

  • You must be informed: Be careful to do your homework and keep abreast of any potential changes to the minimum wage in Arizona. If you’re unsure of which wage regulations apply to you, speak with the city’s Chamber of Commerce or any other business liaisons at city hall. The difference between hourly and salaried employee payroll must be understood.
  • Check your spending plans: Create a hiring strategy that you can afford after carefully reviewing your budget and cash flow. The good thing is that minimum wage rises are disclosed well in advance, enabling you to schedule labor expansion over a number of years. Instead of recruiting full-time employees, you may consider using different types of workers, such as seasonal workers in the winter or summer, to help out your staff during busy seasons. Discover how to organize your staff expenditures by learning about payroll services that are reasonably priced for small businesses.
  • Make wise recruiting decisions: It’s important to make sure you’re starting with the correct staff. After all, replacing staff members is expensive in terms of both time and money. If you take your time while hiring and training your personnel, you’ll end up saving money in the long run (and having more money for your growth). 
  • Modernize your technology: You can ultimately save money and time by improving your operations. So, consider how technology might contribute to lowering those costs. Obtaining a free EIN is the first step. It must be entered into the accounting system of your choice. Numerous useful payroll functions, such as automatic payroll, are available in systems like Square payroll software.
  • Be current: The success of your business depends on you keeping up with current trends. To understand more and secure the future of your firm, read more about small business resources and other subjects that may affect your revenue.


You should always talk to your experienced accountant and lawyer about Arizona’s minimum wage rules to ensure that your firm is ready and remains compliant with applicable wage requirements (such as obtaining an EIN).

Frequently Asked Questions 

What will be Arizona’s minimum wage in 2023? 

Arizona’s minimum wage would increase to almost $13.85 per hour by January 1, 2023, if it keeps going at the same rate until September. Later this year, the Arizona Industrial Commission will formally declare higher pay.

Why is Arizona’s rent so expensive? 

One factor contributing to increasing rent is population growth. However, as rent rates increase, population growth may stall. Phoenix experienced significant development as well, which attracted more individuals to settle there.

Which Arizona town is the safest? 

For the third year in a row, Florence is ranked as Arizona’s safest city. 90% of the cities made the list for the second year in a row, with Buckeye debuting in the top 10 this year. The rankings of Maricopa, Sahuarita, Buckeye, San Luis and Prescott Valley all went up.

Minimum Wage In Arizona

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