2025 Iowa Minimum Wage
The 2025 Iowa Minimum Wage is $7.25.
Effective 2025-01-01Source: Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)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
Employers and employees subject to the Iowa Minimum Wage Law
What changed this year, and why
Iowa's minimum wage for 2025 is set at $7.25 per hour.
Common questions
- What is the minimum wage in Iowa for 2025?
- The minimum wage in Iowa is $7.25 per hour.
Minors, students and training wages: who may be paid less than the rate on this page
Iowa law allows two groups of workers to be paid less than the full $7.25 minimum wage. Tipped employees may be paid a base rate of $4.35 per hour as long as their tips bring total earnings to at least $7.25 per hour averaged over each work week; if they do not, the employer must pay the difference. Additionally, Iowa permits an "initial employment wage" of $6.35 per hour for the first 90 calendar days of employment with a single employer, and this reduced rate cannot be applied again if the employee quits and is later rehired. Iowa law does not create separate subminimum rates specifically for minors or students. A minor working in Iowa is subject to the same minimum wage rules as any other covered worker, though there are special break requirements for workers under a certain age. Questions about the federal training wage, which covers different categories of workers, should be directed to the U.S. Department of Labor's Wage and Hour office rather than the state agency.
If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour. If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference. Can an employer pay less than minimum wage for the first 90 days of a new hire’s employment? Yes. An Iowa employer is allowed to pay an “initial employment wage” of $6.35 per hour for the first 90 days.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
Who to ask about this rate, and where to take a wage complaint
Workers in Iowa who believe they are owed wages not exceeding $6,500.00 can file a wage claim with the Department of Inspections, Appeals, and Licensing (DIAL). A claim form can be printed online in English or Spanish, or requested by mail by calling the number shown in the state's Wage Claims FAQ. Workers also retain the right to pursue their claim independently in court. If the dispute involves the federal minimum wage or federal overtime requirements, the complaint should be directed to the U.S. Department of Labor's Wage and Hour Division instead. Iowa's own minimum wage matches the federal floor, so whether a worker files at the state level or the federal level depends on which law the employer is covered by. Both agencies can answer questions about which minimum-wage rules apply to a particular Iowa workplace.
If you believe you are owed wages not exceeding $6,500.00, you can file a wage claim with the DIAL. Print a Wage Claim in English or Spanish or request a form be mailed to you by calling 515-725-5619. You also have the right to pursue your claim on your own behalf in court. If your claim has to do with federal minimum wage or overtime you may contact the U.S. Department of Labor, Wage & Hour Division at 515-284-4625.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
When tips, meals or lodging count toward the minimum wage
In Iowa, when a tipped employee receives $30 or more per month in tips, the employer may pay a base hourly wage of $4.35 instead of the full minimum. The tips count toward meeting the $7.25 per hour floor: if the employee's base wage plus tips do not average at least $7.25 in any work week, the employer must make up the shortfall. The source document published by Iowa's Department of Inspections, Appeals, and Licensing does not address whether the value of meals or lodging provided by the employer may be credited against the minimum wage. Under federal law, the U.S. Department of Labor allows such credits under certain conditions, but Iowa's wage-law FAQ on this page does not confirm or deny whether those federal rules apply to state-covered employees. Workers or employers in Iowa who need a definitive answer on meal and lodging credits should contact DIAL or the U.S. Department of Labor's Wage and Hour Division.
I'm a tipped employee. Can my employer pay me less than minimum wage? If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour. If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
What an employer may deduct from your pay
Iowa law specifies what may and may not be deducted from an employee's wages. Items that can be deducted include taxes, garnishments, and deductions for any lawful purpose that accrue to the benefit of the employee, but only if the employee has given written authorization for the deduction. Examples listed in the FAQ include insurance premiums, 401K contributions, pensions, bonds, and savings programs. Items that cannot be deducted from wages include cash shortages in a common money till, losses due to breakage or damage, acceptance of bad checks, and default of customer credit except in limited cases. Lost or stolen property and personal protective equipment also generally cannot be deducted. For the full list of exceptions, Iowa workers should consult Iowa Code Chapter 91A.5. These rules apply to workers earning the state's $7.25 per hour minimum wage just as they do to workers earning more; an employer cannot use a prohibited deduction to push a worker's effective pay below the legal minimum.
What can be deducted from my wages? Items on the following list can be deducted from wages. Taxes Garnishments Deductions for any lawful purpose accruing to the benefit of the employee if the employee has given written authorization for the deduction (for example, insurance, 401K, pensions, bonds and savings programs). Items on the following list cannot be deducted: Cash shortages in common money till. Losses due to breakage, damage, acceptance of bad checks, and default of customer credit except in certain limited cases. Lost or stolen property unless certain conditions are met. Personal protective equipment in most cases.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
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.
Wage Claims FAQ (Iowa Department of Inspections, Appeals, and Licensing)
- Hourly
What is the current minimum wage? $7.25 per hour.
Other years
Every Iowa Minimum Wage year · Minimum Wage in every state