When you think about working for the "Uff Da" state, you probably picture a stable desk job with a decent pension and maybe some great health insurance. But honestly, the reality of state of Minnesota salaries has shifted dramatically in the last year. If you haven't looked at a state payroll sheet since 2024, you're basically looking at ancient history.
Between the massive new 2025 pay transparency laws and some of the most aggressive union contract wins in decades, the numbers are looking very different. It’s not just about the "average" anymore. It’s about who is actually taking home the big checks and how the new $11.13 state minimum wage (which hit on January 1, 2025) is trickling up through the entire system.
🔗 Read more: Economic Blackout Day 2025: What Most People Get Wrong About the Viral Protest
The 2025 Transparency Shake-up
Let’s talk about the elephant in the room: the Pay Transparency Law that kicked in on January 1, 2025.
Basically, any employer in Minnesota with 30 or more people now has to put the actual salary range right in the job posting. No more of that "competitive salary" or "depends on experience" nonsense that wastes everyone's time. For state agencies, this has been a bit of a wake-up call. They’ve had to get incredibly specific about what a role pays from day one.
You’ve probably noticed that if you’re looking at a posting for an Assistant Commissioner at Minnesota Management and Budget (MMB), you’ll see a range like $125,134 to $179,150. That’s a huge gap! But at least you know where the ceiling is. This law was designed to fix the "pay history" trap where your old, low salary followed you to your next job. Now, the state—and everyone else—has to lead with their best foot forward.
Who's Actually Making the Most?
If you think Governor Tim Walz is the highest-paid person in the state, you're way off. Honestly, he’s not even in the top 100. As of 2025, the Governor’s salary sits around $149,550. That sounds like a lot until you see what the doctors and investment gurus are pulling in.
The real money in the state of Minnesota salaries database is concentrated in two very specific spots: Direct Care and Treatment (DHS) and the State Board of Investment.
- Psychiatrists and Forensic Medical Experts: In the Direct Care and Treatment division, doctors like Frances Broghammer and Shabeer Ahmed have seen annual earnings north of $600,000. Why? Because these are "24/7" facilities. When you combine a high base salary with the massive amount of mandatory overtime required to keep psychiatric hospitals running, the numbers skyrocket.
- Investment Pros: Jill Schurtz at the Minnesota State Board of Investment is another top earner, often clearing over $530,000. When you're managing billions in pension funds, the state has to pay a "market rate" just to keep you from jumping to a private hedge fund.
- Agency Heads: Most Commissioners, like those heading up Education or Natural Resources, hover in that $150,000 to $155,000 range.
It’s a weird contrast. You have people literally saving lives in state-run hospitals making three times what the person running the entire Department of Revenue makes.
The Union Factor: MAPE and AFSCME
If you're one of the 50,000+ people working for the state, your paycheck is likely dictated by a collective bargaining agreement. This is where things got interesting in the 2025-2027 contract cycle.
The Minnesota Association of Professional Employees (MAPE) and AFSCME didn't just ask for a little extra—they fought for real cost-of-living adjustments. For the first time in over 30 years, MAPE secured double-digit total increases across their recent contracts.
Specifically, for the 2025-2027 period, most state employees are seeing a 1.5% general wage increase that started in July 2025, with another 1.75% scheduled for July 2026. On top of that, there are "step increases" for people who haven't hit the top of their pay grade yet. These steps average about 3.55% per year.
So, if you’re an eligible employee, your actual raises look like this:
- July 1, 2025: 1.5% General Adjustment + 3.55% Step Increase.
- July 1, 2026: 1.75% General Adjustment + 3.55% Step Increase.
That’s a total jump of over 10% in just two years. It's a huge deal, especially when you consider that the state also increased its match for deferred compensation (think 401k-style savings) to $500.
Hidden Costs: The Health Insurance Catch
There’s always a catch, right? While the state of Minnesota salaries are going up, the cost of staying healthy is also climbing.
Starting in January 2026, the state's health insurance premiums (SEGIP) are expected to jump by about 17%. The unions fought hard to make sure the state still covers 88% of those premium costs, but you're still going to see a bigger dent in your take-home pay. For a family plan, you’re looking at an extra $36 to $48 a month. It’s not a dealbreaker, but it definitely nibbles away at that 1.5% raise.
Geography Matters More Than You Think
Where you sit in Minnesota changes how far those state dollars go. Interestingly, state government jobs in places like Plymouth, Buffalo, and Minneapolis tend to have higher average annual pay—often averaging over $117,000 across all roles—compared to rural outposts.
This isn't necessarily because the state pays differently for the same job in different cities (the pay scales are generally statewide), but because the high-level management and IT roles are concentrated in the Twin Cities metro. If you're working in "Information Technology Services" (MNIT), you're likely starting at a much higher floor than someone in a general administrative role in a smaller town.
The "New" Benefits of 2026
We can't talk about salary without mentioning the benefits that act like "shadow income." Minnesota is launching a Paid Family and Medical Leave program in 2026.
This is huge. It basically means state employees (and almost everyone else in MN) will have access to up to 12 weeks of paid leave for medical or family reasons. The funding for this comes from a 0.88% payroll tax, which is split between the employer and the employee. Starting in April 2026, you'll see that small deduction on your check, but in exchange, you've basically bought a massive insurance policy for your time.
Also, as of early 2026, the state changed how breaks work. You now get a 15-minute rest break for every four hours worked, and a full 30-minute meal break if you work six hours. No more "eating at your desk" unless you actually want to.
Breaking Down the Averages
If you’re looking to get into state service, here is what the landscape looks like for 2025/2026 based on the latest MMB data:
Management Occupations: These are the heavy hitters. Average hourly rates are around $59.32. That's a solid six-figure income for most directors and managers.
Computer and Mathematical: MNIT jobs are consistently high, averaging $51.61 per hour. If you can code or manage a database, the state is desperate to keep you from going to Target or UnitedHealth.
Healthcare Practitioners: This is the wildest category. While the average is $46.51 per hour, the specialized roles in forensic psychiatry are the ones hitting those $500k+ totals we talked about earlier.
Office and Administrative Support: This is the backbone of the state. These roles average around $24.07 per hour. It’s steady, but it’s where the 2025 minimum wage hikes and union-negotiated steps are most felt.
How to Check Your Potential Pay
If you're serious about a career with the state, don't just guess. The Minnesota Management and Budget (MMB) website has a "Class and Salary" report that is updated constantly.
Look for your specific job code. Each code has a "Grid" and a "Step." You can literally see exactly what you will be making in five years if you stay in that role. It’s one of the few places in the workforce where the future is actually predictable.
Also, keep an eye on the "Retro-pay." Because contracts are often settled after the old ones expire, state employees frequently get a "lump sum" check for the difference in pay from July 1st to the date the contract was ratified. If you started in late 2025, you might have a nice surprise waiting in your payroll portal.
Actionable Next Steps
If you are looking to maximize your earnings within the Minnesota state system, here is how you should play it:
- Audit Your Step Eligibility: If you’re already a state employee, check your anniversary date. Under the new 2025-2027 MAPE/AFSCME rules, progression increases now happen right on your anniversary. Make sure your HR department has your start date recorded correctly.
- Target "High-Need" Divisions: If you have any medical or psychiatric training, the Direct Care and Treatment division is where the highest earnings (and most overtime opportunities) currently exist.
- Leverage the Deferred Comp Match: The state just increased the match to $500. If you aren't putting at least that much into your deferred comp account, you are literally leaving free money on the table.
- Review the New Job Postings: Even if you aren't looking to leave your current role, look at the new 2025 job postings for your same title in other agencies. Since they have to post the range now, you might find that another agency is starting people at a higher "step" than where you are currently.
The "Golden Handshakes" of the past might be gone, but with the 2025 transparency laws and the recent union wins, state of Minnesota salaries have become more competitive than they've been in a generation. Just be ready to pay a little more for that family health plan come January.