Minimum wage in Indiana in 2027
$7.25 per hour1
per hourGeneral rate from July 24, 2009
No scheduled increase on record.
Year 2027
Rates in force during 2027
| Applies to | Rate | Effective | Until |
|---|---|---|---|
StandardSource: Ind. Code § 22-2-2-4Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009.
Verified September 26, 2026 | $7.25July 24, 2009 – current | July 24, 2009 | current |
2 rates in force
Rates by worker type, industry and employer size
The highest rate that fits the job applies.
| Applies to | Rate | Cash wage | Max tip credit | Effective |
|---|---|---|---|---|
Tipped employees · employer claims a tip creditSource: Ind. Code § 22-2-2-4Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009. The Indiana Minimum Wage Law generally requires employers to pay employees at least the minimum wage for all hours worked and to pay employees 1 ½ times their regular rate of pay (“Overtime compensation”) when employees work more than forty (40) hours during a work week. However, there are many exceptions to the overtime pay re- quirement. Most of those exceptions can be found at Indiana Code § 22-2-2-3 (a) – (p). Indiana law requires every employer subject to the Indiana Minimum Wage Law to furnish each employee a state - ment of the hours worked by the employee, the wages paid to the employee, and a listing of the deductions made. The Indiana Minimum Wage Law also prohibits pay discrimination on the basis of sex. Tipped Employees Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
Verified September 26, 2026 | $7.25July 24, 2009 | $2.13 | — | July 24, 2009 |
Training / new hires · under 20 years old, first 90 consecutive calendar days of employmentSource: Ind. Code § 22-2-2-4Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009. The Indiana Minimum Wage Law generally requires employers to pay employees at least the minimum wage for all hours worked and to pay employees 1 ½ times their regular rate of pay (“Overtime compensation”) when employees work more than forty (40) hours during a work week. However, there are many exceptions to the overtime pay re- quirement. Most of those exceptions can be found at Indiana Code § 22-2-2-3 (a) – (p). Indiana law requires every employer subject to the Indiana Minimum Wage Law to furnish each employee a state - ment of the hours worked by the employee, the wages paid to the employee, and a listing of the deductions made. The Indiana Minimum Wage Law also prohibits pay discrimination on the basis of sex. Tipped Employees Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference. Training Wage Indiana employers may pay $4.25 per hour to employees under 20 years of age for the first 90 consecutive calendar days after the employee is initially employed by the employer.
Verified September 26, 2026 | $4.25July 24, 2009 | — | — | July 24, 2009 |
BLS · May 2025
How the minimum compares with typical pay in Indiana
32%of the median hourly wage
The median hourly wage across all occupations in Indiana is $23.01 and the mean is $29.25 (BLS Occupational Employment and Wage Statistics, May 2025, state estimates). The minimum wage of $7.25 is 32% of the median; the 10th-percentile wage is $14.00, so roughly the lowest-paid tenth of workers earn within $6.75 of the minimum. BLS
| Applies to | Rate |
|---|---|
| Minimum wage | $7.25 |
| 10th percentile | $14.00 |
| 25th percentile | $17.55 |
| Median | $23.01 |
| Mean | $29.25 |
6 rules · September 27, 2026
Labor law basics in Indiana
What the law adds on top of the hourly rate. Follow the citation for exceptions.
Overtime
Employers covered by the Indiana Minimum Wage Law rather than the federal FLSA must pay 1.5 times the regular rate for hours over 40 in a workweek, with many exceptions. (employers not covered by the federal FLSA; most Indiana employers fall under federal law)
Source: Ind. Code § 22-2-2-4
Most Indiana employers and employees are covered by the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA); however those not covered under federal law may still be covered by the Indiana Minimum Wage Law. Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009. The Indiana Minimum Wage Law generally requires employers to pay employees at least the minimum wage for all hours worked and to pay employees 1 ½ times their regular rate of pay (“Overtime compensation”) when employees work more than forty (40) hours during a work week. However, there are many exceptions to the overtime pay re- quirement. Most of those exceptions can be found at Indiana Code § 22-2-2-3 (a) – (p).
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Tips
Employers claiming a tip credit must pay tipped employees at least $2.13 an hour and make up the difference if tips plus that wage fall short of the minimum wage. (tipped employees)
Source: Ind. Code § 22-2-2-4
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Required poster
Employers covered by the Indiana Minimum Wage Law must display the state minimum wage poster in a conspicuous place where employees work.
Source: Ind. Code § 22-2-2-4
Indiana law requires this poster to be displayed in a conspicuous place in the area where employees are employed.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Young workers' hours
16- and 17-year-olds may work the same hours as adults with no parental permission needed, while 14- and 15-year-olds remain under hour and day limits but may work until 9 p.m. on any day from June 1 through Labor Day. (minors under 18)
Source: Ind. Code § 22-2-18
16- and 17-year-olds may now work the same hours and days as an adult. No parental permission is required for 16- and 17-year-olds to work longer or later hours. 14- and 15-year-olds are still bound by the same hour and day restrictions but may now work until 9:00 PM on any day between June 1st and Labor Day. (some exceptions may apply)
- Source
- agency page
- snapshot
- September 27, 2026
- Notes
- The same page says employers no longer have to give minors a meal break. Federal limits for 14- and 15-year-olds still apply.
Verified September 27, 2026
Recovering unpaid wages
The Indiana Department of Labor accepts wage claims as a service to resolve wage disputes, but it cannot guarantee compensation and Indiana law gives no job protection to a worker who is terminated for filing a wage claim against a current employer.
Source: Ind. Code §§ 22-2-5, 22-2-9
The Indiana Department of Labor accepts Wage Claims as a service to resolve wage disputes. We cannot guarantee compensation. In addition, Indiana law provides no job protection if you are terminated as a result of filing a wage claim against your current employer.
- Source
- agency page
- snapshot
- September 27, 2026
Verified September 27, 2026
Overtime-exempt salary threshold
Executive, administrative and professional employees are exempt from minimum wage and overtime only if they meet the duties tests and are paid a salary of at least $684 per week ($35,568 a year). (executive, administrative, professional and outside sales employees)
Source: 29 C.F.R. Part 541
To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.
- Source
- agency page
- snapshot
- September 26, 2026
- Notes
- The 2024 rule raising the level to $844/$1,128 was vacated in November 2024; DOL enforces the 2019 level of $684.
Verified September 26, 2026
$7.25 / hour
Calculators
Estimates before tax at this rate. Nothing you type leaves this page.
What this wage pays
| Weekly | $290.00 |
|---|---|
| Monthly52 weeks ÷ 12 | $1,256.67 |
| Annual52 weeks | $15,080.00 |
| Overtime rate1.5× where overtime applies | $10.88 |
5 questions
Frequently asked questions
What is the minimum wage in Indiana in 2027?
$7.25 per hour since July 24, 2009. For a 40-hour week that is about $290.00 a week or $15,080.00 a year before tax.
Is the minimum wage in Indiana increasing?
No increase is scheduled on record as of October 1, 2026. Inflation-indexed jurisdictions announce the next figure a few months before it takes effect.
What is the tipped minimum wage in Indiana?
Employers may pay tipped employees a cash wage of $2.13 per hour as long as tips bring them to $7.25.
What is the minimum wage for young or new workers in Indiana?
Training / new hires (under 20 years old, first 90 consecutive calendar days of employment): $4.25 per hour.
How does Indiana compare with other states?
Indiana's $7.25 ranks 32 of 51 state general rates, against a federal floor of $7.25.
2 levels of law
How this rate is resolved
The highest minimum that covers the work location applies.
Employers must pay the highest minimum that covers the work location. WageTable checks each level in turn:
- United States
- Indiana
Indiana sets 3 rules of its own.
Notes on this jurisdiction's rules and sources
Indiana Minimum Wage Law of 1965 (Ind. Code § 22-2-2) tracks the federal rate; it covers employers of two or more employees not covered by the FLSA. No scheduled increase.
Indiana
Enforcement
Enforced by Indiana Department of Labor, Wage and Hour Division. Employers must display the official minimum wage poster.
Underpaid?File a wage claim