Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect
Published Date: 2/9/2026
Notice
Summary
Starting May 11, 2026, workers on certain federal contracts will see their minimum wage jump to $13.65 an hour, while tipped workers will get at least $9.55 an hour. This change affects contracts from 2015 to early 2022 that weren’t renewed after January 30, 2022. If you work on or manage these contracts, get ready for the new pay rates to kick in and keep those paychecks growing!
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Federal‑contract wage rises to $13.65
If you perform work on federal contracts covered by Executive Order 13658 (contracts entered January 1, 2015 through January 29, 2022 that were not renewed or extended on or after January 30, 2022), your minimum wage will increase to $13.65 per hour beginning May 11, 2026. The notice states the prior Executive Order 13658 rate was $13.30 per hour.
Tipped workers get $9.55 cash wage
If you are a tipped employee performing work on federal contracts covered by Executive Order 13658 (contracts entered January 1, 2015 through January 29, 2022 not renewed on or after January 30, 2022), your minimum cash wage will increase to $9.55 per hour beginning May 11, 2026. The new cash wage is 70 percent of the $13.65 minimum and is rounded to $9.55.
Contractors face higher payroll costs
If you hold federal contracts that are covered by Executive Order 13658 (contracts entered January 1, 2015 through January 29, 2022 that were not renewed or extended on or after January 30, 2022), you must pay workers at least $13.65 per hour and tipped employees at least $9.55 per hour beginning May 11, 2026. Employers and contract managers should prepare for these increased wage obligations.
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