Minimum Wage in Indiana

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, 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 2021 is the same as the federal minimum wage – $7.25 per hour.

Are you interested in the history of the minimum wage in Indiana?
We have created a bar graph showing you the minimum wage in each year over the past 10+ years. There is also a convenient PDF you can download. Scroll to the bottom of this page.

Did the Indiana Minimum Wage Go Up?

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 2021.

Minimum Wage in Indiana

Indiana Minimum Wage 2021

Out of all 50 US states, 21 of them are still using the federal minimum wage as their state minimum wage, the other 29 all provide higher wages for their employees.

The way in which most state’s 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).

Here are the exceptions to the Indiana minimum wage 2021

  • It is mandatory for tipped employees in Indiana to be paid a minimum of $2.13 per hour, with tips making up $5.12, in total equalling the Indiana state minimum wage.
  • For new employees, a training wage of $4.25 per hour can be paid for the first 90 days of employment, you must be under 20 years old for this to be valid.
  • Full-time students can be paid at the very least 85% of the state minimum wage, this works out at $6.16 per hour. You are only eligible for this wage if you’re working 20 hours or fewer each week and classed as a full-time student. For more information on Indiana minimum wage laws and changes, please visit the Indiana Department of Labor website.

There are many amazing facts about the state of Indiana that you probably haven’t heard of. Feel free to check out a comprehensive list of them that also includes some very important economic facts if you are looking to start your own business or franchise or get a job in the state.

Indiana Minimum Wage History

The table below provides the history of Indiana’s minimum wage over the years since 2008. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents.

StateWageYear$ Wage Increase% Increase
Indiana Minimum Wage 2021$7.252021$00%
Indiana Minimum Wage 2020$7.252020$00%
Indiana Minimum Wage 2019$7.252019$00%
Indiana Minimum Wage 2018$7.252018$00%
Indiana Minimum Wage 2017$7.252017$00%
Indiana Minimum Wage 2016$7.252016$00%
Indiana Minimum Wage 2015$7.252015$00%
Indiana Minimum Wage 2014$7.252014$00%
Indiana Minimum Wage 2013$7.252013$00%
Indiana Minimum Wage 2012$7.252012$00%
Indiana Minimum Wage 2011$7.252011$00%
Indiana Minimum Wage 2010$7.252010$00%
Indiana Minimum Wage 2009$7.252009$0.250.38%
Indiana Minimum Wage 2008$6.552008$00%

Indiana minimum wage history for more than 10 years – downloadable PDF below

Indiana minimum wage history

Indiana Minimum Wage History – Downloadable PDF

EIN Number Indiana

As an Indiana business owner and employer, or someone that is looking to register an LLC or an incorporated company in Indiana with the goal of hiring employees, now, or in the future, you will need to have an Indiana EIN number.

An EIN is also known as an Employer Identification Number and is issued by the internal revenue service (IRS). We have created a guide on how to get an EIN number in Indiana with the IRS, and it includes links to the appropriate sources and forms and the differences between whether you are a U.S. citizen or a foreign national applying for an Indiana EIN.