Indiana Minimum Wage (2025)

The Indiana minimum wage for 2025 is set at $7.25 per hour.

For tipped employees in Indiana, the minimum cash wage is $2.13 per hour. Employers may take a tip credit, but must ensure tipped employees earn at least the full minimum wage of $7.25 when direct wages and tips are combined. Employers may take a tip credit of up to $5.12. Total earnings must reach at least $7.25/hour. Understanding the tipped minimum wage is essential for both employers and workers in the service industry.

Indiana allows a youth minimum wage of $4.25 per hour under specific conditions. Federal youth wage applies for workers under 20 during the first 90 consecutive calendar days of employment. This reduced training wage helps employers create entry-level opportunities while ensuring young workers receive fair compensation during their initial employment period.

In addition to the base minimum wage, Indiana has specific overtime and premium pay requirements. Weekly overtime is required after 40 hours. Employers must carefully track working hours to ensure compliance with these regulations.

Important considerations for Indiana's minimum wage law include: Applicable to employers of 2 or more employees. Employers should consult with legal counsel to ensure full compliance with these provisions.

For the most current and authoritative information on Indiana's minimum wage laws and regulations, employers and workers should consult the official Indiana labor department website or legal counsel. Understanding your rights and obligations regarding minimum wage, tipped wages, and youth employment is essential for both employers and employees.