Indiana Minimum Wage Calculator
Indiana’s covered minimum wage is $7.25 per hour. It has not moved since July 24, 2009, when it rose from $6.55. At 40 hours, that is $290 gross weekly and $15,080 over 52 identical weeks. Both ordinary federal coverage and Indiana’s state law use overtime after 40 hours, but the two laws do not cover exactly the same employers.
Time card Calculate pay for a covered hourly job
Weekly gross including tips—
Confirm coverage to calculate.
- Hourly floor—
- Per workday—
- Weekly gross—
- Monthly average—
- Yearly gross—
- Employer cash before shortfall
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- Weekly tips retained
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- Employer shortfall payment
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- Total employer cash
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Overtime uses the full regular rate before subtracting a permitted tip credit. The employer must cover a weekly tip shortfall within the selected scope. This floor scenario does not calculate pay at a higher agreed rate. Per-workday pay divides the week by the days with hours. Annual figures repeat the rounded weekly result.
Reviewed rate period: 2026-01-01 through 2027-12-31. Gross earnings before taxes or deductions. Annual figures repeat this weekly scenario; they do not combine different rate periods.
Reviewed October 2, 2026. U.S. DOL state wage table; Indiana official employment poster.
Indiana minimum wage by year
| Period | Hourly minimum | Tipped cash with a credit | Training wage, under 20, first 90 days |
|---|---|---|---|
| Until July 23, 2009 | $6.55 | Not stated on the current poster | |
| July 24, 2009 to today (2026) | $7.25 | $2.13 | $4.25 |
| 2027 | $7.25 unless the law changes | $2.13 | $4.25 |
The Department of Labor’s current Indiana Minimum Wage Law poster still names $7.25 and says the state and federal rates moved together from $6.55 on July 24, 2009. The state has no inflation index, so 2027 stays at $7.25 unless the General Assembly or Congress changes the figure; the calculator applies $7.25 to every 2026 and 2027 work date. The training wage is a separate floor for new workers under 20 and is not modeled here. Indiana Department of Labor minimum-wage poster, checked October 12, 2026.
Indiana’s two-employee rule does not replace federal coverage
Indiana’s business guide describes the state minimum-wage posting requirement for employers outside federal minimum-wage coverage with at least two employees in a workweek. Federal enterprise and individual coverage must be checked first; the number of people on one shift is not a complete coverage test. The form assumes coverage has been established rather than choosing a law from headcount alone. Indiana business guide, minimum-wage section.
Weekly overtime and tipped cash examples
| Covered week | Employer cash before shortfall | Tips retained | Employer adjustment | Gross total |
|---|---|---|---|---|
| 40 hours, full cash | $290.00 | $0 | $0 | $290.00 |
| 50 hours, full cash | $398.75 | $0 | $0 | $398.75 |
| 40 tipped hours with low tips | $85.20 | $150.00 | $54.80 | $290.00 |
| 50 tipped hours with sufficient tips | $142.75 | $300.00 | $0 | $442.75 |
The 50-hour full-cash result is 40 × $7.25 plus 10 × $10.875. For an eligible tipped job, the maximum credit stays $5.12 on overtime hours. The calculation retains fractions of a cent in the hourly premium and rounds the weekly cash total.
The $2.13 cash amount is conditional. Tips must support the credit, required notice must be provided, and the employee must retain tips except for lawful pooling. Managers cannot use a tip pool to take employee tips, and mandatory service charges need separate treatment. Federal tipped-worker requirements.
Compare hours, gross wages and deductions as separate items
Indiana’s official poster says employees covered by the state law must receive a statement showing hours, wages paid and deductions. Match the workweek’s hours and gross cash to the calculation first. Then review taxes and other deductions separately; the annual or monthly estimate here is not a net paycheck. Indiana statement-of-wages requirement.
A 35-hour week at $7.25 is $253.75. Working that schedule for 48 weeks gives $12,180. A calendar month may contain a different number of paydays than another month, even when this average stays constant. Enter actual weeks rather than assuming year-round paid employment.
State lines matter around Indiana’s borders
A worker commuting out of state should check the workplace’s rules: Illinois minimum wage, Michigan minimum wage, Ohio minimum wage or Kentucky minimum wage. Illinois local ordinances and Ohio employer thresholds cannot be inferred from Indiana’s rate. Salary exemptions, minors, agriculture and contractual premiums are excluded from this ordinary adult hourly model.
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