HOURLY WAGE INDEX
Let’s talk wages in Indiana
What is the minimum wage in Indiana?
The minimum wage in Indiana is $7.25 per hour, the same as the federal minimum wage. Tipped employees must be paid at least $2.13 per hour, but employers must ensure wages and tips combined equal at least the minimum wage. Employers may pay a sub-minimum training wage of $4.25 per hour to learners and employees under 18 for the first 90 consecutive calendar days of employment.
What is the average wage in Indiana?
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Indiana is $26.12. Wages vary by occupation, industry, and location.
What is the living wage in Indiana?
The estimated living wage in Indiana is $21.79 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in Indiana
● Standard Minimum Wage: $7.25 (Ind. Code § 22-2-2-4) (29 US Code § 206).
● Tipped Minimum Wage: $2.13, totaling at least minimum wage after tips (Ind. Code § 22-2-2-4).
● Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL).
● Meal Breaks: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
● Rest Breaks:
● Children under 18: One or two rest breaks totaling 30 minutes if they work six or more consecutive hours (IN DoL).
● Adults: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
● Wage Deductions: Employers can only make wage deductions for specific purposes such as those required by law or authorized in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Ind. Code § 22-2-6-2) (29 C.F.R. § 4.168) (29 US Code § 203 ).
● Final Paychecks: Payable on the next regular payday after termination or resignation (Ind. Code § 22-2-9-2).
● Wage Payment Frequency: Semimonthly or biweekly, if requested (Ind. Code § 22-2-5-1).
● Paid Sick Leave: Indiana has no state or federally-mandated paid sick leave. Policies are determined by the employer or through collective bargaining agreements (DoL).
● Paid Family and Medical Leave: No Indiana paid leave law. The federal FMLA provides eligible employees up to 12 unpaid weeks per one-year period for a qualifying medical condition (FMLA).
● Maximum Daily and Weekly Hours for Children Under 16:
● School session: No working during school hours; three hours per day; 18 hours per week.
● Non-school session: Eight hours per day; 40 hours per week.
● Working Hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (Ind. Code § 22-2-18.1-1 et seq.) (29 C.F.R. 570.35).
● Maximum Daily and Weekly Hours for Children 16 and 17:
● School session: Eight hours per school day and 30 hours per school week. No working between 10 p.m. and 6 a.m. on school nights.
● Non-school session: Eight hours per day and 40 hours per week. No working between 12 a.m. and 6 a.m. on non-school nights (Ind. Code § 22-2-18.1-1 et seq. (29 C.F.R. § 570.35.
Frequently asked questions
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:
- Short, easy to understand job descriptions
- Mobile-friendliness
- Quick communication
- Streamlined interview stages
Resources
Become a hiring and onboarding expert.
