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HOURLY WAGE INDEX

Let’s talk wages in Indiana

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$7.25

What is the minimum wage in Indiana?

As of March 8, 2023, the minimum wage in Indiana is $7.25 per hour. It is the same as the federal minimum wage. The Indiana minimum wage for tipped employees is $2.13 per hour. However, if the employee's tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.

The Indiana minimum wage has not increased since 2009. However, there are several proposals to increase the minimum wage, but none of them have been successful.

Here are some of the exceptions to the minimum wage law in Indiana:

  • Learners: Employers may pay learners a sub-minimum wage of $4.25 per hour for the first 90 consecutive calendar days after the learner is initially employed by the employer.
  • Certain workers with physical or mental limitations: Employers may pay sub-minimum wages to workers with physical or mental limitations that limit their ability to do the job.
  • Employees under 18 years old: Employers may pay employees under 18 years old a sub-minimum wage of $4.25 per hour for the first 90 consecutive calendar days after the employee is initially employed by the employer.
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$20.05

What is the average wage in Indiana?

The average wage in Indiana is $20.05 per hour. This is slightly lower than the national average of $24.34 per hour. 

Wages can vary greatly depending on your occupation, experience, and education level. For example, entry-level jobs in customer service may pay around $13 per hour, while experienced lawyers can earn upwards of $100 per hour.
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$11.14

What is the living wage in Indiana?

The living wage in Indiana is $11.14 per hour. This is the hourly wage that an individual must earn to cover their basic living expenses. 

The living wage is higher for families with children. For a family of four, the living wage is $23.54 per hour.

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

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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
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Learn about wages in your city

Indianapolis Minimum Wage 2024