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The Mandate Monitor

Indiana minimum wage: $7.25 an hour (the federal rate)

Checked November 8, 2026Source: Indiana Department of Labor, Wage and Hour Division

Short answer

Indiana has no state minimum wage above the federal one, so most employers there must pay at least $7.25 an hour under the federal Fair Labor Standards Act (FLSA).

Employers may pay tipped employees $2.13 an hour in cash, as long as tips bring them up to at least $7.25.

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On your payroll in Indianaper hour
Minimum wage today
$7.25
Tipped employees, cash wage
$2.13
Full-time year at today’s rate (2,080 hours)
$15,080

We found no city or county in Indiana with its own higher minimum wage.

Indiana minimum wage by date

EffectiveMinimum wageTipped cash wageNote
July 24, 2009Current$7.25$2.13State rate matches the federal minimum; Indiana’s law covers employers with 2 or more employees.source
July 24, 2008$6.55$2.13source

Other Indiana rates

90-day training wage

Employers may pay employees under 20 this rate for the first 90 consecutive calendar days after they’re first hired.

Today: $4.25

Other Indiana pay rules

Paydays
At least twice a month or every two weeks, if the employee asks. Wages must be paid within 10 business days after they are earned.
Overtime
Time and a half after 40 hours in a workweek. The state law covers employers with 2 or more employees that are not subject to the federal minimum wage law.
Final paycheck
Fired: By the next regular payday. Quit: By the next regular payday.

From the Indiana Department of Labor and the U.S. Department of Labor’s state tables. All Indiana employer rules.

Minimum wage in states next to Indiana

If you hire across a state line, the worker’s state sets the rate.

StateTodayNext change
Indiana$7.25None scheduled
Illinois$15.00None scheduled
Michigan$13.73$15.00 on January 1, 2027
Ohio$11.00$11.40 on January 1, 2027
Kentucky$7.25None scheduled

Questions employers ask

What is the minimum wage in Indiana in 2026?

Indiana has no state minimum wage above the federal one, so most employers there must pay at least $7.25 an hour under the federal Fair Labor Standards Act (FLSA).

What is the tipped minimum wage in Indiana?

Employers may pay tipped employees $2.13 an hour in cash, as long as tips bring them up to at least $7.25.

When does the Indiana minimum wage go up next?

No increase is scheduled under current Indiana law. Any change would need new legislation or a ballot measure.

Do cities in Indiana have a higher minimum wage?

We found no city or county minimum wage in Indiana.

Does Indiana require overtime pay?

Time and a half after 40 hours in a workweek. The state law covers employers with 2 or more employees that are not subject to the federal minimum wage law.

Compare every state’s minimum wage · Everything employers in Indiana must do

Sources

  1. Indiana Department of Labor, Wage and Hour Division
  2. Indiana Minimum Wage Law poster, Indiana Department of Labor (read Nov 8, 2026)
  3. State Minimum Wage Laws (updated November 5, 2026), U.S. Department of Labor, Wage and Hour Division (read Nov 8, 2026)
  4. Minimum Wages for Tipped Employees, historical table (October 1, 2008), U.S. Department of Labor, Wage and Hour Division (read Nov 8, 2026)
  5. Indiana Code 22-2-2-3, Definitions; exemptions (2025 code), Indiana General Assembly (read Nov 8, 2026)