For many people moving to the United States to start a business or those that own a business or are looking to start or buy a company or franchise, it is a good idea to familiarize yourself with the minimum wage system and structure in the U.S. It can be confusing as a business owner what you are legally obligated to pay your employees as it varies so much depending on what state, city, or even county you are in.
The United States boasts a unique minimum wage system, while most other nations will use a national minimum wage to decide what will be paid at the very minimum to its employees. And whilst the US has a national minimum wage rate, it also allows each state to set its own minimum wage.
Indiana’s state minimum wage in 2023 is the same as the federal minimum wage – $7.25 per hour.
If you are a full-time worker on Indiana state minimum wage, your earnings could be as follows:
- Daily Minimum Wage: $58.00 (based on an 8-hour working day).
- Weekly Minimum Wage: $290.00 (based on a 40-hour week).
- Yearly Minimum Wage: $15,080.00 (based on being paid 52 weeks per year).
The graphic below highlights the Indiana minimum wage over the past several years. The minimum wage did not go up and remains at $7.25 per hour in 2023.
You can view and download the Indiana state minimum wage labor law poster for 2022-2023 here at no charge. Employers must display an official poster outlining the requirements of the Fair Labor Standards Act (FLSA), ensuring that accurate employee time and pay records are kept.
Out of all 50 US states, 21 of them are still using the federal minimum wage as their state minimum wage, and the other 29 all provide higher wages for their employees. The way in which most states’ minimum wage increases is through calculations and estimations made through the consumer price index. Indiana has not increased the state minimum wage since 2009 when it rose from $6.55 to $7.25 (70 cent increase).
Indiana Minimum Wage History
The table below provides the current rate and history of Indiana’s minimum wage over the past 40+ years since 1983. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.
| State | Wage | $ Wage Increase | % Increase |
|---|---|---|---|
| Indiana Minimum Wage 2023 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2022 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2021 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2020 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2019 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2018 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2017 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2016 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2015 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2014 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2013 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2012 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2011 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2010 | $7.25 | $0 | 0% |
| Indiana Minimum Wage 2009 | $7.25 | $0.25 | 0.38% |
| Indiana Minimum Wage 2008 | $6.55 | $0.70 | 11.96% |
| Indiana Minimum Wage 2007 | $5.85 | $0.70 | 13.59% |
| Indiana Minimum Wage 2006 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2005 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2004 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2003 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2002 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2001 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 2000 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 1999 | $5.15 | $0 | 0% |
| Indiana Minimum Wage 1998 | $4.25 | $0.90 | 26.86% |
| Indiana Minimum Wage 1997 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1996 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1995 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1994 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1993 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1992 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1991 | $3.35 | $0 | 0% |
| Indiana Minimum Wage 1990 | $3.35 | $1.35 | 67.5% |
| Indiana Minimum Wage 1989 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1988 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1987 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1986 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1985 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1984 | $2.00 | $0 | 0% |
| Indiana Minimum Wage 1983 | $2.00 | $0 | 0% |
Indiana minimum wage history for more than 10 years – downloadable PDF below
Indiana Minimum Wage History – Downloadable PDF
Indiana Minimum Wage Exemptions
In addition to the regular minimum wage rate, there are a few Indiana state minimum wage exemptions that typically depend on your age or employment situation. Below are the various minimum wage exemptions with some situational examples.
Indiana Student Minimum Wage
The minimum wage for student employees in Indiana is 85% of the Indiana minimum wage, making their hourly pay $6.16 per hour in 2023.
This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Indiana minimum wage rate of $7.25 per hour.
Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying. Despite a student minimum wage rate, many Indiana employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.
Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.
Indiana Under 20 Minimum Wage
If you are under 20 years old in Indiana, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.
Once the 90-day period is over, you will be eligible to be paid the 2023 Indiana minimum wage of $7.25 per hour or potentially even more.
Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.
Indiana Tipped Minimum Wage
If you are a tipped employee in Indiana (someone who receives regular tips as a part of their job) then you are eligible to be paid a minimum wage of $2.13 per hour, with a tip credit of $5.12 per hour, ensuring that you reach the statewide minimum wage regardless if you make enough hourly tips.
Indiana Overtime Minimum Wage
Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40. So, the overtime Indiana state minimum wage is $10.88 per hour, 1.5 times the minimum wage of $7.25 per hour.
