Minimum wage in Iowa in 2027
$7.25 per hour1
per hourGeneral rate from January 1, 2008
No scheduled increase on record.
Year 2027
Rates in force during 2027
| Applies to | Rate | Effective | Until |
|---|---|---|---|
StandardSource: Iowa Code § 91D.11. a. The state hourly wage shall be at least $6.20 as of April 1, 2007, and $7.25 as of January 1, 2008.
Verified September 26, 2026 | $7.25January 1, 2008 – current | January 1, 2008 | 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 · receives $30 or more a month in tipsSource: Iowa Code ch. 91DWhat is the current minimum wage? $7.25 per hour. Can my employer pay me less than minimum wage, if I am a tipped employee? If you make $30 per month or more in tips, the employer may pay as little as $4.35 per hour. If in any work week the wage the employer pays you and the tips you receive do not average at least $7.25 per hour, the employer is required to pay the difference.
Verified September 26, 2026 | $7.25January 1, 2008 | $4.35 | — | January 1, 2008 |
Training / new hires · employee who has not completed 90 calendar days of employment with the employerSource: Iowa Code § 91D.1An employer shall pay an employee who has not completed ninety calendar days of employment with the employer an hourly wage of at least $5.30 as of April 1, 2007, and $6.35 as of January 1, 2008.
Verified September 26, 2026 | $6.35January 1, 2008 | — | — | January 1, 2008 |
BLS · May 2025
How the minimum compares with typical pay in Iowa
31%of the median hourly wage
The median hourly wage across all occupations in Iowa is $23.34 and the mean is $28.76 (BLS Occupational Employment and Wage Statistics, May 2025, state estimates). The minimum wage of $7.25 is 31% of the median; the 10th-percentile wage is $13.91, so roughly the lowest-paid tenth of workers earn within $6.66 of the minimum. BLS
| Applies to | Rate |
|---|---|
| Minimum wage | $7.25 |
| 10th percentile | $13.91 |
| 25th percentile | $17.58 |
| Median | $23.34 |
| Mean | $28.76 |
8 rules · September 27, 2026
Labor law basics in Iowa
What the law adds on top of the hourly rate. Follow the citation for exceptions.
Pay frequency
Employers must pay wages at least in monthly, semimonthly or biweekly installments on regular paydays designated in advance, no more than 12 days (excluding Sundays and legal holidays) after the end of the pay period.
Source: Iowa Code § 91A.3
An employer shall pay all wages due its employees, less any lawful deductions specified in section 91A .5 , at least in monthly , semimonthly , or biweekly installments on regular paydays which are at consistent intervals from each other and which are designated in advance by the employer . However , if any of these wages due its employees are determined on a commission basis, the employer may , upon agreement with the employee, pay only a credit against such wages. If such credit is paid, the employer shall, at regular intervals, pay any difference between a credit paid against wages determined on a commission basis and such wages actually earned on a commission basis. These regular intervals shall not be separated by more than twelve months. A regular payday shall not be more than twelve days, excluding Sundays and legal holidays, after the end of the period in which the wages were earned.
- Source
- statute
- snapshot
- September 27, 2026
Verified September 27, 2026
Final paycheck
Employees who leave employment for any reason must be paid their final wages on the next regularly scheduled payday.
Source: Iowa Code ch. 91D
If you leave employment for any reason, you are to be paid on the next regularly scheduled payday.
- Source
- agency page
- snapshot
- September 26, 2026
- Notes
- Iowa Code § 91A.4.
Verified September 27, 2026
Recovering unpaid wages
The Iowa Wage and Child Labor Unit accepts a wage claim only when less than one year (365 days) has passed since the wages were due, less than $6,500 is owed and all the work was done in Iowa.
Source: Iowa Code ch. 91D
The Wage and Child Labor Unit only accepts Wage Claims when the following applies: Less than one year (365 days) since the wages were due. Amount owed is less than $6,500. All work was performed in the State of Iowa.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Young workers' hours
Minors under 16 may work only between 7 a.m. and 9 p.m. (11 p.m. from June 1 through Labor Day), at most 8 hours a day and 40 hours a week, and at most 6 hours a day and 28 hours a week while school is in session, with a break of at least 30 minutes when working 5 hours or more. (minors under 16)
Source: Iowa Code § 92.7
A person under sixteen years of age shall not be employed with or without compensation, except as provided in sections 92.5 and 92.6A , before the hour of 7:00 a.m. or after 9:00 p.m., except during the period from June 1 through Labor Day when the hours may be extended to 11:00 p.m. If such person is employed for a period of five hours or more each day , an intermission of not less than thirty minutes shall be given. Such a person shall not be employed for more than eight hours in one day , exclusive of intermission, and shall not be employed for more than forty hours in one week. The hours of work of persons under sixteen years of age employed outside school hours shall not exceed six in one day or twenty -eight in one week while school is in session.
- Source
- statute
- snapshot
- September 27, 2026
Verified September 27, 2026
Tips
For tipped employees who customarily receive more than $30 a month in tips, the employer's share of the wage must be at least $4.35 an hour. (tipped employees)
Source: Iowa Code § 91D.1
TIP CREDIT – The employer’s share for tipped employees who customarily and regularly receive more than $30 per month in tips must be at least $4.35 an hour.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Required poster
Employers must display the Iowa minimum wage poster where all employees can easily see it.
Source: Iowa Code § 91D.1
The law requires displaying this poster where it can easily be seen by all employees
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 27, 2026
Overtime
Covered non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek; federal law sets no daily overtime and no weekend or holiday premium. (non-exempt employees covered by the FLSA)
Source: 29 U.S.C. § 207
Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, as such.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 26, 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 Iowa in 2027?
$7.25 per hour since January 1, 2008. 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 Iowa 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 Iowa?
Employers may pay tipped employees a cash wage of $4.35 per hour as long as tips bring them to $7.25.
What is the minimum wage for young or new workers in Iowa?
Training / new hires (employee who has not completed 90 calendar days of employment with the employer): $6.35 per hour.
How does Iowa compare with other states?
Iowa'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
- Iowa
Iowa sets 3 rules of its own.
Notes on this jurisdiction's rules and sources
Iowa Code § 91D.1: state rate since January 1, 2008, with a lower initial-employment rate for the first 90 calendar days. Most retail and service establishments grossing under $300,000 a year are not covered (federal rules apply). No scheduled increase. State and local minimum wages above the state rate are preempted (2017 Iowa Acts, H.F. 295).
Iowa
Enforcement
Enforced by Iowa Department of Inspections, Appeals, and Licensing, Wage and Child Labor Unit. Employers must display the official minimum wage poster.
Underpaid?File a wage claim