2018 Indiana Minimum Wage
The 2018 Indiana Minimum Wage is $7.25.
Effective 2018-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2017
Every figure on this page is unchanged from 2017.
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Hourly | $7.25 | $7.25 | +$0 (+0.0%) |
Who it applies to
Most employers and employees in Indiana covered by the Indiana Minimum Wage Law or the federal Fair Labor Standards Act.
What changed this year, and why
The minimum wage in Indiana remained at $7.25 per hour.
Common questions
- Are there exceptions to the minimum wage for tipped employees or young workers?
- Employers may pay a lower hourly wage to young employees for an initial period after they are hired, but the tips-and-credit rules still require that total compensation meet the minimum wage.
Minors, students and training wages: who may be paid less than the rate on this page
Under Indiana law, employers may pay a training wage of $4.25 per hour to employees who are under 20 years of age. This lower rate applies only for the first 90 consecutive calendar days after the employee is initially hired. After that period ends, or once the employee reaches age 20 (whichever comes first), the employer must pay at least the standard minimum wage. This provision is designed to encourage employers to hire young workers by allowing a temporary reduced wage during an initial training period. Indiana does not have a separate subminimum wage for students in this document, though federal law may provide additional categories. The training wage is one of the limited circumstances where an Indiana employer may lawfully pay less than the standard rate.
Indiana employers may pay $4.25 per hour to employees under 20 years of age for the first 90 consecutive calendar days after the employee is initially employed by the employer.
Indiana Minimum Wage Law (Indiana Department of Labor)
Overtime is paid at one and one-half times the regular rate
Under Indiana law, employers must pay overtime to covered employees at 1 ½ times their regular rate of pay for any hours worked beyond 40 in a single work week. Indiana calls this "Overtime compensation." The overtime premium is calculated based on the employee's regular hourly rate, not on the minimum wage floor. However, the Indiana Minimum Wage Law recognizes many exceptions to this requirement, and most of them are set out in Indiana Code § 22-2-2-3 (a) through (p). Workers and employers in Indiana should consult that statute to determine whether a particular job or industry is exempt from the overtime premium. When the overtime rule does apply, the employer must pay the premium for every hour over 40 worked in that work week.
The Indiana Minimum Wage Law generally requires employers to pay employees at least the minimum wage for all hours worked and to pay employees 1 ½ times their regular rate of pay (“Overtime compensation”) when employees work more than forty (40) hours during a work week.
Indiana Minimum Wage Law (Indiana Department of Labor)
State minimum wage laws that give more than the federal rate
In Indiana, most employers and employees fall under the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA). However, workers who are not covered by federal law may still be protected by the Indiana Minimum Wage Law. This means that even if the federal FLSA does not apply to a particular employer or employee, Indiana's own statute may still require payment of at least $7.25 per hour. In practice, Indiana employers must look at both the federal and state rules and follow whichever provides the greater protection to the worker. Since both the federal and Indiana minimum wage rates are currently the same, the key question is usually one of coverage—whether a given worker falls under federal law, state law, or both—rather than a difference in the dollar amount owed.
Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law.
Indiana Minimum Wage Law (Indiana Department of Labor)
What an employer may deduct from your pay
In Indiana, employers are generally required to pay all workers the minimum hourly wage, but the law also includes rules about deductions from pay. Indiana law requires every employer covered by the Indiana Minimum Wage Law to give each employee a written statement showing the hours worked, the wages paid, and a listing of all deductions taken from their pay. This ensures that Indiana workers can see exactly what has been subtracted from their earnings each pay period. While the law mandates this transparency, it does not specify in this document exactly which types of deductions are permitted or prohibited.
Indiana law requires every employer subject to the Indiana Minimum Wage Law to furnish each employee a state- ment of the hours worked by the employee, the wages paid to the employee, and a listing of the deductions made.
Indiana Minimum Wage Law (Indiana Department of Labor)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Indiana Minimum Wage Law (Indiana Department of Labor)
- Hourly
Indiana Minimum Wage Law $7.25 per hour
Other years
Every Indiana Minimum Wage year · Minimum Wage in every state