2022 Indiana Tipped Minimum Wage
The 2022 Indiana Tipped Minimum Wage is $2.13.
Effective 2022-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2021
Every figure on this page is unchanged from 2021.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Minimum cash wage | $2.13 | $2.13 | +$0 (+0.0%) |
Who it applies to
Indiana employers who claim a tip credit for tipped employees
What changed this year, and why
The minimum cash wage that Indiana employers may pay tipped employees remained $2.13 per hour in 2022, unchanged from 2021.
Common questions
- What must an employer do if an employee's tips plus the cash wage do not reach the full minimum wage?
- The employer must make up the difference so the employee receives at least the applicable minimum wage for all hours worked.
What a tip credit is, and the cash wage underneath it
Under Indiana law, an employer may pay a tipped employee a direct cash wage of $2.13 per hour and claim a tip credit. The tip credit is the difference between that cash wage and the full minimum wage; the employer treats the employee's tips as filling the gap. The cash wage the employer actually hands the employee cannot be less than $2.13 per hour, and the employee must keep all of their tips. If the cash wage plus the tips together reach at least the minimum wage for every hour worked, the employer's obligation is satisfied through the tip credit arrangement.
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit.
Indiana Minimum Wage Law (Indiana Department of Labor)
When the tips do not get you to the minimum wage
In Indiana, a tipped employee who is paid the cash wage of $2.13 per hour is still entitled to receive at least the full minimum wage for every hour worked when tips and the cash wage are combined. If the employee's tips plus the $2.13 hourly cash wage fall short of that minimum, the employer must make up the difference out of pocket. This guarantee applies each pay period and protects workers whose tips in a given week are lower than expected: the employer cannot rely on an average across busy and slow weeks and must cover any shortfall in the week it occurs.
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)
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)
- Minimum cash wage
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit.
Other years
Every Indiana Tipped Minimum Wage year · Tipped Minimum Wage in every state