Indiana minimum wage 2025: $7.25/hr
Current Indiana minimum wage for non-tipped workers, tipped workers, overtime rules, exemptions, scheduled increases, and how $7.25/hr compares to the federal rate and to other US states. Verified against Indiana's labor department.
Data last updated: Jan 15, 2025Key Takeaways
- Indiana minimum wage: $7.25/hr (effective 2009-07-24).
- Tipped minimum: $2.13/hr.
- Matches federal: $7.25/hr.
- No scheduled increases.
What is the minimum wage in Indiana?
The $Indiana minimum wage is $7.25 per hour as of 2009-07-24. A full-time employee working 40 hours per week at this rate earns approximately $15,080 per year in gross pay before taxes.
Indiana matches the federal minimum wage of $7.25/hr. The state has not adopted a higher state minimum, so federal and state requirements produce the same minimum wage.
Tipped minimum wage in Indiana
Indiana allows employers to pay tipped employees a reduced base wage of $2.13/hr, provided that tips bring the employee's total hourly earnings to at least the full state minimum of $7.25/hr. This is called a "tip credit."
If a tipped employee's tips fall short of the standard minimum wage for any pay period, the employer must make up the difference. Example: a server earns $2.13/hr base plus $4.12/hr in tips during a slow shift. Because total earnings ($6.25/hr) are below the $7.25/hr standard minimum, the employer owes the difference.
How Indiana compares nationally
Across all 51 US jurisdictions, minimum wage ranges from $5.15/hr (Wyoming, the lowest) to $17.50/hr (District of Columbia, the highest). Indiana sits at #34 of 51, meaning it's in the lower middle.
Local minimum wages in Indiana
None. State preemption prevents local minimum wage ordinances.
If a city or county has a higher local minimum wage, employers in that jurisdiction must pay the higher local rate. State law is a floor, not a ceiling, for local minimum wage ordinances.
Overtime rules in Indiana
Federal FLSA rules apply. Indiana follows the federal 40-hour-per-week overtime threshold.
Minimum wage exemptions
Standard FLSA exemptions apply.
What to do if you're underpaid
Underpayment below the legal minimum is a wage-and-hour law violation. Your options:
- File a state wage claim. The $Indiana labor department accepts wage claims and can pursue unpaid wages, penalties, and liquidated damages on your behalf. See the source links below for direct links.
- File a federal Department of Labor complaint. The US DOL Wage and Hour Division handles FLSA violations. Federal filings have a 2-year statute of limitations (3 years for willful violations).
- Consult an employment lawyer. Significant underpayment or retaliation claims often warrant a private attorney. Many employment lawyers work on contingency. See our Indiana employment lawyer directory.
- Document everything. Save pay stubs, timesheets, and employer communications. The burden of proof for unpaid wages usually rests on the employee.
Frequently Asked Questions
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What is the minimum wage in Indiana in 2025?
The Indiana minimum wage is $7.25 per hour for non-tipped workers, effective 2009-07-24. Indiana matches the federal minimum wage of $7.25/hr. Indiana ranks #34 of 51 US jurisdictions by minimum wage level.
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What is the tipped minimum wage in Indiana?
The Indiana tipped minimum wage is $2.13 per hour. Employers can pay tipped employees this lower rate as long as tips bring their total hourly earnings up to at least the full state minimum wage ($7.25/hr). If tips don't make up the difference, the employer must cover the gap. The federal tipped minimum is $2.13/hr, so states with no separate tipped wage effectively require employers to pay the full minimum up front.
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Does Indiana pay higher than the federal minimum wage?
Indiana's minimum wage matches the federal rate of $7.25/hr. Most Indiana employees covered by the FLSA earn this federal-level rate unless local ordinances or industry-specific rules apply.
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How much is a full-time minimum-wage job in Indiana?
At $7.25/hr for a standard 40-hour week, a full-time minimum-wage worker in Indiana earns approximately $15,080/year gross before taxes. Take-home pay varies by local tax rate, employee benefits, and whether the employer offers paid leave. Overtime hours (over 40/week, or in some states over 8/day) are paid at time-and-a-half or more.
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Are there local minimum wages in Indiana that differ from the state rate?
Yes. None. State preemption prevents local minimum wage ordinances. When a local ordinance sets a higher minimum wage, employers in that jurisdiction must pay the higher local rate. Check your specific city or county's ordinance if you work in an urban area.
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Are minimum wage increases scheduled in Indiana?
Indiana does not currently have scheduled future increases on the books. Changes to the minimum wage require new legislation or a state commission adjustment.
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What happens if my employer pays less than the Indiana minimum wage?
Underpayment is a violation of state and federal wage-and-hour law. Remedies usually include recovery of unpaid wages, interest, liquidated damages (often doubling the amount owed), and attorney's fees. You can file a wage claim with the Indiana labor department, file a federal Department of Labor complaint, or bring a private lawsuit. The filing deadline varies; federal FLSA claims have a 2-year statute of limitations (3 years for willful violations). Consult a Indiana employment lawyer for significant underpayment claims.