2024 Indiana Tipped Minimum Wage
The 2024 Indiana Tipped Minimum Wage is $2.13.
Effective 2024-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2023
Every figure on this page is unchanged from 2023.
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Minimum cash wage | $2.13 | $2.13 | +$0 (+0.0%) |
Who it applies to
Indiana employers that pay tipped employees and claim a tip credit
What changed this year, and why
The 2024 tipped minimum wage (minimum cash wage) in Indiana
Common questions
- What happens if a tipped 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 full minimum wage for every hour worked.
Every amount on this page is a published figure rather than yours. The Tips needed per hour takes the number you enter and works it out against them, showing which published figure it used.
What a tip credit is, and the cash wage underneath it
Indiana allows employers to pay tipped employees a reduced cash wage of $2.13 per hour, provided the employer claims a tip credit. The tip credit is the difference between that direct cash wage and the full minimum wage, meaning the employer is counting on the employee's tips to cover the remainder. An Indiana worker in a tipped position therefore receives at least $2.13 per hour in cash from the employer, with the expectation that tips will bring total compensation up to the state minimum wage. This arrangement applies to employees who regularly receive gratuities as part of their job. Employers who do not claim a tip credit must pay the full minimum wage in cash instead. Tipped employees in Indiana should understand that the $2.13 cash wage is the lowest hourly amount an employer can pay under the tip credit; it is not the total compensation the worker is guaranteed to receive.
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 protects tipped workers from being paid below the minimum wage through a shortfall provision. When an employer claims a tip credit and pays the reduced cash wage of $2.13 per hour, the employee's tips are expected to bring total earnings up to at least the minimum wage. If that does not happen — for example, in a slow week when tips are unusually low — the employer cannot simply pay the lower amount and leave the worker short. Instead, the employer must make up the difference so that the employee's combined cash wages and tips equal at least the full minimum wage for all hours worked. This guarantee applies every pay period, meaning Indiana employers who use the tip credit must monitor each employee's actual tip income and add to their pay whenever the tips fall short of bridging the gap between the $2.13 cash wage and the minimum wage.
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