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Indiana Minimum Wage 2026: What Employers Must Know
The Indiana minimum wage in 2026 is $7.25 per hour, matching the federal minimum wage exactly, according to the U.S. Department of Labor.
Indiana is one of several states that has not enacted a state minimum wage above the federal floor. This guide covers the current rate, overtime rules, and what Indiana employers need for payroll compliance in 2026.
Indiana Minimum Wage vs. Federal Minimum Wage
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Indiana | $7.25/hour |
| Federal (FLSA) | $7.25/hour |
Because Indiana has not set a state minimum wage above the federal rate, employers must pay at least $7.25 per hour statewide, subject to any applicable tipped-wage rules.
Overtime Rules in Indiana
Indiana calculates overtime on a weekly basis: nonexempt employees are owed 1.5 times their regular rate for hours worked over 40 in a workweek. There is no daily overtime requirement under Indiana law.
Small-Employer Threshold
Indiana minimum wage law generally applies to employers with 2 or more employees. This is a lower threshold than many states, meaning most Indiana businesses are covered. Employers with only one employee should confirm their specific status with the Indiana labor office.
Paid Sick Leave and Family Leave in Indiana
Indiana does not currently mandate paid sick leave or operate a state paid family and medical leave program. Employers should track any applicable federal leave obligations and watch for local ordinances that could add requirements in the future.
Tipped Wages and Local Ordinances
Indiana permits a tip credit for eligible tipped employees against the state minimum wage. Because credit amounts and eligibility rules can change, employers should confirm current tipped-wage requirements and any local rules at the Department of Labor state contacts page.
What This Means for Payroll Compliance
Even without a state minimum wage above the federal rate, Indiana employers still need accurate overtime calculations, correct employer-size classification, and tipped-wage tracking on every pay run.
BEG's managed payroll service builds Indiana's wage and overtime rules directly into your payroll configuration, so a growing headcount does not translate into growing compliance risk.
Indiana Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your Indiana business.
Learn more about managed payroll in Indiana or HR outsourcing in Indiana to see how BEG supports compliance beyond the pay run.
Frequently Asked Questions
What is the minimum wage in Indiana in 2026?
The Indiana minimum wage is $7.25 per hour in 2026, matching the federal minimum wage. Indiana has not enacted a state minimum wage above the federal floor.
Does Indiana require overtime pay?
Yes. Indiana calculates overtime on a weekly basis, requiring 1.5 times the regular rate for hours worked over 40 in a workweek.
Which employers must comply with Indiana minimum wage law?
Indiana minimum wage law generally applies to employers with 2 or more employees. Very small employers should confirm their specific obligations with the state labor office.
Does Indiana require paid sick leave?
No. Indiana does not have a state-mandated paid sick leave law or a state paid family and medical leave program. Employers should still confirm any applicable federal leave requirements.
How does BEG help with Indiana payroll compliance?
BEG manages payroll at $25-$45 PEPM, all-inclusive, covering Indiana wage compliance, overtime, and filings as part of a flat monthly rate with no per-run add-ons.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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