2025 Indiana Minimum Wage
The 2025 Indiana Minimum Wage is $7.25.
Effective 2025-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2024
Every figure on this page is unchanged from 2024.
| Item | 2024 | 2025 | 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
Indiana's minimum wage is $7.25 per hour for 2025. This rate has remained the same since it was last increased to match the federal minimum wage.
Common questions
- What is the minimum wage in Indiana for 2025?
- The minimum wage in Indiana is $7.25 per hour. This matches the federal minimum wage under the Fair Labor Standards Act.
- Are there exceptions to the minimum wage for tipped employees or young workers?
- Yes. Indiana employers may pay a lower hourly rate to employees under 20 years of age during their initial employment period. If an employee's tips combined with the hourly wage paid do not reach the minimum wage, the employer must make up the difference.
Minors, students and training wages: who may be paid less than the rate on this page
Indiana allows employers to pay a training wage of $4.25 per hour to employees who are under 20 years of age. This subminimum rate applies only during the first 90 consecutive calendar days after the employee is initially hired. After that 90-day period ends, or when the employee reaches age 20 (whichever comes first), the employer must pay the full minimum wage of $7.25 per hour. This provision is designed to encourage employers to hire younger workers by allowing a lower wage during an initial training period. Workers in Indiana who are 20 or older, or who have been employed for more than 90 days, are not eligible for this training wage and must receive at least the standard minimum wage for all hours worked.
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 the Indiana Minimum Wage Law, employees who work more than 40 hours in a work week must be paid overtime compensation at a rate of 1 ½ times their regular rate of pay for each hour beyond 40. This means that if an Indiana worker's regular hourly wage is $7.25, their overtime rate would be one and one-half times that amount for every hour worked over 40 in a single work week. The law recognizes numerous exceptions to this overtime requirement, which are detailed in Indiana Code § 22-2-2-3 (a) through (p). Workers in Indiana should be aware that certain job classifications or circumstances may exempt them from overtime pay, so consulting the specific statutory exceptions or contacting the Indiana Department of Labor may be necessary to determine whether a particular position qualifies for overtime compensation.
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)
Who to ask about this rate, and where to take a wage complaint
Workers in Indiana who have questions about the state minimum wage, believe their rights have been violated, or need to file a wage complaint should contact the Indiana Department of Labor's Wage and Hour Division. This division handles inquiries and complaints related to Indiana's minimum wage requirements, overtime pay, and other wage and hour protections under state law. The Wage and Hour Division can be reached by email at wagehour@dol.in.gov or by phone at (317) 232-2655. Indiana law provides for both civil and criminal penalties for employers who violate the Indiana Minimum Wage Law, so workers with legitimate concerns should not hesitate to reach out to this state agency for assistance and guidance on filing a wage complaint.
For additional information, please contact the Indiana Department of Labor’s Wage and Hour Division by email at wagehour@dol.in.gov or phone (317) 232-2655.
Indiana Minimum Wage Law (Indiana Department of Labor)
State minimum wage laws that give more than the federal rate
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. This means that Indiana provides a safety net for workers whose employment falls outside federal coverage - they are still entitled to the state minimum wage of $7.25 per hour. Currently, the Indiana state minimum wage matches the federal rate, so workers across the state receive the same baseline pay floor regardless of which law applies to them. Employers in Indiana must comply with whichever law - federal or state - provides greater protection to the employee, and in practice both laws set the same minimum hourly rate for covered workers.
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)
When tips, meals or lodging count toward the minimum wage
Indiana law allows employers to pay tipped employees a lower cash wage of $2.13 per hour, provided the employer claims a tip credit. However, if the employee's tips combined with this hourly wage do not equal at least $7.25 per hour (the full minimum wage), the employer must make up the difference. This means that tipped workers in Indiana are guaranteed to receive at least the standard minimum wage when their tips and cash wage are combined. Employers cannot use the tip credit to pay workers less than the minimum wage once tips are factored in. If a tipped employee's total earnings (tips plus the $2.13 hourly wage) fall short of $7.25 per hour for any work period, the employer is required to increase the cash wage to ensure the employee receives the full minimum wage. This protection ensures that tipped workers in Indiana receive at least the same base compensation as non-tipped employees.
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
Indiana Minimum Wage Law (Indiana Department of Labor)
What an employer may deduct from your pay
Indiana law requires every employer subject to the Indiana Minimum Wage Law to provide each employee with a written statement showing the hours worked, the wages paid, and a listing of all deductions made from the employee's pay. This transparency requirement ensures that workers in Indiana can see exactly what has been deducted from their wages each pay period. However, the Indiana Minimum Wage Law does not specify in this poster what types of deductions are permissible or whether deductions can reduce an employee's pay below the minimum wage. Workers who believe their employer has made improper deductions that have reduced their effective hourly wage below $7.25 should contact the Indiana Department of Labor's Wage and Hour Division to determine whether those deductions violate state wage protections. The requirement for itemized pay statements helps employees identify and question any deductions that may be unlawful.
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