The 1970 minimum wage was $1.60/hr, a rate that had been set back in 1968 and didn't move again until 1974. The federal minimum wage then went through five increases in the rest of the 1970s, more than in any other decade before or since.

Federal Minimum Wage in 1970 and Through the Decade

  • 1970-1973: $1.60/hr. No change: this rate had been set in 1968 and stayed flat until 1974.
  • 1974: raised to $2.00/hr, effective May 1, 1974.
  • 1975: raised to $2.10/hr, effective January 1, 1975.
  • 1976: raised to $2.30/hr, effective January 1, 1976.
  • 1977: $2.30/hr. No change that year.
  • 1978: raised to $2.65/hr, effective January 1, 1978.
  • 1979: raised to $2.90/hr, effective January 1, 1979.
Amendments to the Fair Labor Standards Act typically phase a new minimum wage in over several years rather than raising it in a single step, a pattern that has held for nearly every major federal increase since 1938.

Why Did the Rate Change So Often in the Late 1970s?

The five increases between 1974 and 1979 all came from a single 1974 amendment to the Fair Labor Standards Act, which scheduled a multi-year phase-in rather than one lump increase. This is the same pattern Congress has used for nearly every major federal minimum wage increase since: pass one law, phase the rate up over several years. The late 1970s saw high inflation, which is part of why lawmakers built in a faster phase-in than earlier or later amendments used.

How Did the 1970 Minimum Wage Compare to Today?

The $1.60/hr rate in 1970 sounds tiny next to today's $7.25/hr federal minimum wage, but inflation explains almost the entire gap. Measured in today's dollars, $1.60/hr in 1970 had considerably more purchasing power than the raw number suggests, since prices for housing, food, and most goods were far lower at the time. The 1970s ended with a $2.90/hr federal minimum wage, roughly 81% higher in nominal terms than the decade's starting rate.

What Expanded During This Period?

Beyond the rate increases, 1970s-era amendments to the FLSA also expanded coverage to more employers and employees than the original 1938 law had reached, part of a broader pattern of the law's scope growing alongside its dollar figures through the mid-20th century.

Why Nominal Dollar Figures From the 1970s Can Be Misleading

Comparing a $2.90/hr rate from 1979 directly to today's $7.25/hr, without adjusting for inflation, understates how much the minimum wage actually grew in real terms over that period. The 1970s in particular saw unusually high inflation in the US economy, which is exactly why Congress built a faster, five-step phase-in into the 1974 amendment rather than a single flat increase. Any serious comparison across decades needs an inflation adjustment, not just the raw dollar figures.

Frequently Asked Questions

What was the minimum wage in 1970?

$1.60 per hour, the same rate that had been set in 1968. It didn't change again until May 1974.

What was the minimum wage in 1972?

Still $1.60 per hour. No federal increase occurred in 1972; the next change came in 1974.

How many times did the minimum wage increase in the 1970s?

Five times: 1974, 1975, 1976, 1978, and 1979, all from a single 1974 law that phased in the increases over several years.

What was the federal minimum wage by the end of the 1970s?

$2.90 per hour, effective January 1, 1979.

How the 1970s Compares to Other Decades

Five increases in ten years makes the 1970s the most active decade in federal minimum wage history by number of raises, edging out even the FLSA's earliest years. Compare that to the 1980s, which saw the rate frozen for over nine years after a single 1981 increase, or the current stretch since 2009, now the longest gap on record. See our 1980s wage freeze breakdown for the decade that followed.

See the complete federal minimum wage history from 1938 to 2026, or check your state's current minimum wage. For official historical rate data, see the US Department of Labor's minimum wage history chart.