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Minimum Wage in Indiana in 2023

Last Updated on:

09 January 2023
Minimum Wage in Indiana

Every state in the United States has the right to assign its minimum wage based on how much it costs to live there. In Indiana, the state government has paid precisely the federal minimum wage.

Currently, the minimum wage in Indiana is the same as the federal minimum wage, which is $7.25 per hour. Since 2008, the minimum base salary in Indiana and the other 21 states that use the federal minimum wage have been the same.

So, unlike in Ohio, Arkansas, Hawaii, and Oregon, the minimum wage for workers in Indiana is not rising. Also, workers who do business under the Indiana Department of Labor must be required to keep the lowest base wage set for workers.

In later parts of this article, we'll discuss overtime pay, subminimum compensation, and tipped minimum wage.

What is the Minimum Wage in Indiana?

To avoid breaking the law, all companies in Indiana should follow the Fair Labor Standards Act (FLSA) rules on minimum wage. According to FLSA, regular employees in the state cannot be paid less than the federal minimum wage.

The minimum wage in Indiana is $7.25 an hour.

Senate Democrats want to raise Indiana's minimum wage step by step until it reaches $15 an hour. Eddie Melton, a state senator, has proposed a bill implementing the wage law. But people still have different ideas about it, and there has yet to be any progress.

1. Tipped Minimum Wage

The US Department of Labor says that tipped employees are those who regularly get more than $30 monthly tips.

The tipped minimum wage in Indiana is $2.13 for every hour, which is comparable to the Federal minimum wage.

The employer must make up the difference if an employee's total earnings, direct remuneration, and tips are less than their minimum wage.

A tip credit generally applies if the employer pays their tipped workers less than the federal minimum wage. The goal is to ensure employers pay at least the federal minimum wage, if not more. So, Indiana employers can get a credit up to $5.12 tips, which, when introduced to the minimum wage for tipped workers of $2.13, comes to $7.25 per hour. 

It is also up to the employer to keep track of all the tips workers get.

2. Training Wage

At the very least, full-time students can earn at least 85% of the regular minimum wage, which is $6.16 per hour. You can only get this wage when you are a full-time student and work 20 hours or less each week. 

Employers can pay workers under 20 years old $4.25 per hour as a subminimum wage for the first 90 working days of their employment.

3. Indiana Weekly Minimum Wage

According to the State and Federal wage law, the minimum weekly salary in Indiana is $290 when the workweek consists of 5 work days or 40 hours.

Tipped employees can earn the same amount as the regular workers every week as the employer will ensure that the gratuities and wage totals are above the State minimum wage of 7.25 dollars.

For the first 90 days, the trainee or new job recruit will receive $170 per week. 

4. Indiana Overtime Minimum Wage

The Fair Labor Standards Act sets the rules for overtime minimum wage in Indiana (FLSA). This law says that if employees work more than 40 hours a week unless they are exempt, they should get 1.5 times their regular wage rate.

$10.875 an hour is the minimum overtime wage for an adult worker who falls under the non-exempt category. 

Throughout Indiana, working weeks is any 168-hour period that happens every week, even if it doesn't match the calendar week.

Read more about the wage and hour according to the Indiana Department of Labor. 

How is Indiana Minimum Wage Different from the Federal Minimum Wage?

The federal minimum wage and the Indiana minimum wage are both $7.25 an hour. Employers with two or more workers must pay at least this much. In 2008, Indiana's minimum wage went up by $0.60.

Although there is no difference between the two rates, there are potential proposals that may lead to an increase.

The following are some factors you can consider to get ready for the Indiana minimum wage to go up:

1. Stay Updated

Ensure you are researching and keeping up to date on changes. You can talk to the local Chamber of Commerce if you need clarification on which wage rules apply to you.

2. Hire the Right People

Getting rid of employees can cost time and money. If you take time hiring, training, and keeping employees, you'll save money and have more money for your business's growth.

3. Plan your Spending

Check your cash flow and budget carefully and make a plan for hiring that fits your budget. As it will take some time to increase the wage, you still have time to prepare. Think about this when you hire new people or give raises.

4. Upgrade your Gadgets

In the long run, you will save money and time by making operations more effective. So think about how technology can help you save money on these things. For example, implement internet banking opportunities to reduce time.

Who Qualifies for Minimum Wage?

We looked through the Bureau of Labor Statistics for occupational employment and found that the lowest-paid workers in Indiana are lobby attendants, ushers, and ticket takers.

Here's a glance at the ten jobs in Indiana that pay the least:

  • Ushers, Ticket Takers, and Lobby Attendants
  • Lifeguards, Ski Patrol, and other recreational safety services Workers
  • Helpers in the dining room, cafeteria, and bar are needed
  • Cooks, Hosts, and Hostesses at Fast Food Restaurants

There are a few exceptions to Indiana's minimum wage laws regarding the kinds of workers who must be paid at least that amount.

Among these exceptions are the following types of workers:

  • Children younger than 16
  • Employees whose pay is based on how much they sell
  • People who work for close relatives
  • People who do work for a religious order that they belong to
  • Student nurses
  • Outside salespersons
  • Lawyers and people who sell insurance
  • Persons doing agricultural labor
  • Professionals, managers, and executives who make $150 or more a week

Historical Change of Minimum Wage in Indiana

Starting July 24, 2009, the federal minimum and Indiana state minimum wage climbed from $6.55 per hour to $7.25 per hour mandated by Indiana Department of Labor. Only 21 of the 50 US states still use the lowest pay permitted by law as their state minimum salary. The other 29 all pay their workers more than the federal minimum wage.

The cost of living index calculates and estimates how much the minimum wage will go up in most states.

The most frequent modifications in Hawaii's minimum wage happened around the 1990s, 2000s, and 2010s when it raised from $3.35 to $5.15 to $7.25. The chart below illustrates how Indiana's minimum wage has changed during the past few years. The minimum salary has stayed the same; in 2023, it is still $7.25 an hour.

Effective Date

Minimum Wage Per Hour



July 24, 2009


July 24, 2008


January 1, 2007




January 1, 2000


January 1, 1998




January 1, 1993


April 1, 1992



1. Is Indiana going to a $15 Minimum Wage?

A bill was brought to the Indiana General Assembly to raise the state minimum wage. It was proposed from $7.25 to $10 per hour beginning on June 30, 2021. In 2022, it was $13 an hour, and currently in 2023, it's $15 an hour. However, the bill still needs to be passed, and there are fewer chances that Indiana will increase the wage.

2. What is a decent salary in Indiana?

Indiana's average yearly wage as of November 22,2022 is $48,516. That comes out to about $23.32 an hour, the decent salary in Indiana. This amounts to $933 each week or $4,043 per month.

3. How much does McDonald’s pay per hour in Indiana?

The hourly pay for a McDonald's Crew Member in Indiana is about $11.89. It is 6% less than the national average.

4. What is Middle Class Wage in Indiana?

In Indiana, for a single person living alone need to earn between $23,562 and $70,687 to maintain a middle class household. And for a middle class family of four people the wage should be $47,125- $141,374.  

5. What salary is considered rich in Indiana?

The top 20% earners who earns minimum $97,257 are considered as the rich wage in Indiana. 

6. Where is the Cheapest and Safest place to live in Indiana?

Muncie, New Castle, Richmond, Connersville, Peru and Marion

Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.

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