2025 Indiana Tipped Minimum Wage
The 2025 Indiana Tipped Minimum Wage is $2.13.
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 |
|---|---|---|---|
| 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 remains $2.13 per hour for 2025.
Common questions
- What is the minimum cash wage for tipped employees in Indiana in 2025?
- Employers must pay tipped employees at least $2.13 per hour in cash wages if the employer claims a tip credit.
- What if a tipped employee's tips plus cash wage do not reach the minimum wage?
- The employer must make up the difference so that the employee receives at least the full minimum wage.
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.
Who counts as a tipped employee
Indiana's tipped-employee rules follow the federal Fair Labor Standards Act. The Indiana Department of Labor's poster identifies a section for "Tipped Employees" and sets out the cash wage and the employer's obligation when tips fall short, but it does not spell out the dollar threshold that separates a tipped employee from a regular employee. For the definition of who qualifies, Indiana workers and employers look to the FLSA standard, which the state poster references by noting that most Indiana employers and employees are covered by the federal law.
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)
What a tip credit is, and the cash wage underneath it
Under Indiana law, employers may pay tipped employees a reduced direct cash wage of $2.13 per hour, but only if the employer claims a tip credit. The tip credit is the difference between this lower cash wage and the full minimum wage that would otherwise be required. Indiana follows the federal Fair Labor Standards Act on this point, and the state's minimum cash wage matches the federal floor. For a tipped worker in Indiana, this means the hourly paycheck from the employer can be lower than the standard minimum wage. The employer relies on customer tips to make up the gap. The tip credit is only available when the employer formally claims it. If the employer does not claim a tip credit, the full minimum wage applies instead. Workers in Indiana should understand that their employer is permitted to pay the lower cash wage only when the tip credit is properly claimed and the employee's total earnings still reach at least the full minimum wage once tips are counted. The $2.13 cash wage represents the minimum amount the employer must pay directly; tips are expected to cover the remainder up to the full minimum wage.
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
Under Indiana law, if a tipped employee's tips combined with the hourly cash wage do not add up to at least the full minimum wage, the employer must make up the difference. This means the employer cannot pay the reduced cash wage of $2.13 per hour and leave the worker short. The employer is responsible for ensuring the employee receives at least the full minimum wage for all hours worked when tips and wages are combined. For a tipped worker in Indiana, this rule provides a safety net. Even though the employer may pay a lower direct cash wage, the worker's total earnings from wages plus tips must reach the minimum wage threshold. If customer tips are low in a given pay period, the employer must pay the shortfall. This obligation falls on the employer, not the employee. The Indiana Minimum Wage Law enforces this requirement, and violations can result in both civil and criminal penalties under state law. Workers who believe their employer is not making up the difference should contact the Indiana Department of Labor's Wage and Hour Division.
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