Minimum wage in Indiana
Indiana's basic minimum wage is $7.25 an hour (applicable to employers of 2 or more employees). That equals the federal minimum wage of $7.25, in force since July 24, 2009. Employers may pay tipped employees a cash wage of $2.13 and count tips toward the rest, with a tip credit of up to $5.12. Against Indiana's $7.25 floor for FLSA-covered employers, among its 4 neighbors Illinois ($15.00), Michigan ($13.73) and Ohio ($11.00) are higher and Kentucky ($7.25) is the same.
Verified against the U.S. Department of Labor on (DOL's state table updated ). Source: State Minimum Wage Laws, Minimum Wages for Tipped Employees.
At a glance
| Item | Value |
|---|---|
| State minimum wage | $7.25 |
| Against the federal $7.25 | equal to federal |
| Floor for FLSA-covered employers | $7.25 (the higher of the state and federal rates) |
| Scheduled change | None listed by DOL |
| Overtime threshold in state law | Weekly - 40 |
| Tipped cash wage | $2.13 |
| Maximum tip credit | $5.12 |
Rates as DOL lists them
| Rate per hour | Applies to |
|---|---|
| $7.25 | Applicable to employers of 2 or more employees |
Premium pay after designated hours: Weekly - 40. DOL footnote 1: The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.
Scheduled increases
DOL lists no scheduled increase and no indexing formula for Indiana. A change would require new legislation or a ballot measure.
Tipped employees
Indiana's required cash wage for tipped employees is the federal $2.13; tips may make up the rest of the applicable minimum wage.
| Row | Combined cash and tip minimum | Maximum tip credit | Minimum cash wage | Tipped employee defined by monthly tips of |
|---|---|---|---|---|
| Indiana | $7.25 | $5.12 | $2.13 | More than $30 |
A dash means DOL left the cell blank. DOL's general footnote 1: Other additional deductions are permitted, for example for meals and lodging.
Neighbors and the federal floor
| State | State rate | Floor for FLSA-covered employers |
|---|---|---|
| Indiana | $7.25 | $7.25 |
| Illinois | $15.00 | $15.00 |
| Michigan | $13.73 | $13.73 |
| Ohio | $11.00 | $11.00 |
| Kentucky | $7.25 | $7.25 |
| Federal (FLSA) | $7.25 | $7.25 |
More than one law can apply
DOL states that where federal, state and local minimum wage laws all cover an employer, the employer must pay the highest applicable rate. Whether a particular job is covered by the Fair Labor Standards Act, by Indiana's law, or by a city or county ordinance depends on facts this site does not assess. City and county rates are not in DOL's table and are not shown here. This page describes published rates and is not legal advice; for how to raise an underpayment, see FastGuide.
Take-home pay and benefits calculators for Indiana
FastCalc, a sister site, has these calculators for Indiana. Each takes your own figures; this site computes nothing.
Related
- Indiana wage profile: what occupations actually pay in Indiana, from BLS data.
- Minimum wage by state and the federal minimum wage.
- Federal versus state minimum wage and tipped wages and tip credits.
- Take-home pay calculator on FastCalc for what $7.25 an hour leaves after withholding; this site computes nothing.