The Alaska minimum wage will increase from $9.89 to $10.19 in 2020. A ballot initiative was passed in 2014 to adjust minimum wage annually in order to keep up with inflation. Inflation is up 3% from last year. The current federal minimum wage is $7.25. Alaska minimum wage must be $1 per hour over the federal minimum wage by law and applied to all hours worked in a pay period irrespective of how employees are paid which could be by time, piece, commission or any other means. Gratuities cannot be counted towards the minimum wage. In addition employees that are exempt must be paid on a salary basis of not less than twice the current Alaska minimum wage, based on a 40 hour work week to keep their exemption status. The new increase will mean Alaska will have the 12th highest minimum wage in the country.