Minimum wage: No state minimum above federal; federal $7.25 applies.
2What this employee costs you
Frequently asked questions
How much does it cost to hire an employee in Alabama?
A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $40,978 a year before benefits: employer payroll tax $2,864, FUTA $42, Alabama unemployment $216 and typical workers' comp $416. That's $20.49 per hour worked.
What is the Alabama SUTA rate for new employers in 2026?
2.7% on the first $8,000 of each employee's wages (U.S. DOL, January 2026).
What is the Alabama minimum wage in 2026?
$7.25 per hour (federal minimum; no higher state rate). No state minimum above federal; federal $7.25 applies.
How much is workers' comp in Alabama?
The 2024 Oregon premium-rate study puts Alabama's all-industry index rate at $1.11 per $100 of payroll (rank 24 of 51; national median $1.09). Your real rate depends on job class and claims history.
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