2023 Indiana Tipped Minimum Wage
The 2023 Indiana Tipped Minimum Wage is $2.13.
Effective 2023-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | 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
Indiana's tipped minimum cash wage remained at $2.13 per hour for 2023.
Common questions
- What is the tipped minimum cash wage in Indiana for 2023?
- Employers who claim a tip credit must pay tipped employees at least $2.13 per hour in direct wages.
- What if an employee's tips do not bring their total pay up to the minimum wage?
- The employer must make up the difference so the employee receives at least the full minimum wage for all hours worked.
What a tip credit is, and the cash wage underneath it
In Indiana, employers of tipped workers may pay a direct cash wage as low as $2.13 per hour when the employer claims a tip credit. The tip credit allows the employer to count the employee's tips toward meeting the full minimum wage obligation. For tipped employees in Indiana, this means they receive at least $2.13 per hour in cash from the employer, with their tips expected to bring total compensation up to the regular minimum wage. If tips plus the direct cash wage fall short of the minimum wage, the employer must cover the difference.
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
Indiana law requires that tipped employees always earn at least the regular minimum wage in total compensation. When a tipped worker's direct cash wage plus their tips do not reach the minimum wage for the hours worked, the employer must pay the shortfall. This guarantee means that even during slow periods when tips are low, employees in Indiana cannot end up earning less than the minimum wage. The responsibility to make up any gap falls on the employer, not the employee.
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