In Indiana, the minimum wage mirrors the level that is set by the federal government at $7.25 per hour
Paying employees the minimum wage in Indiana applies to practically all employees. There are, however, limited exceptions, such as some high school and college students, workers receiving gratuities, and some other exempt categories.
Indiana’s minimum wage applies to all businesses with two or more employees. For workers under the age of 18, a minimum training wage of $4.25 an hour can be paid, but only for a limited period of the first 90 consecutive days of a new job.
So, employers in Indiana cannot pay their employees less than $7.25 an hour unless they or their workers hold specific exempt status under state or federal law.
Executive, professional, and administrative staff are exempt from the hourly minimum wage law since they are paid salaries. However, this only applies if they earn at least $455 weekly.
Other examples of exempt employee categories include agricultural workers, hospital interns, student nurses, and minors ages 15 or younger. A recent study indicated that more than 25% of Hoosiers work for $15 per hour or less.
Indiana Paycheck Calculator
This Paycheck Calculator will help you convert your hourly wage to weekly, monthly, or annual earnings.
How to use our Indiana paycheck calculator
- Put in your hourly wage.
- Put in how many hours you work weekly.
- Then, our paycheck calculator converts your hourly wage to weekly, monthly, or annual earnings.
How does our Indiana paycheck calculator work?
Understanding their income and paycheck is, for most employees, not a complicated process. Periodically, like every week or two weeks, or monthly, they will get a paycheck, and at the end of the year, they will get their tax forms.
For this type of employee, the ones who get paychecks periodically, understanding how much they make isn’t that hard. Things are quite different, however, for employees who get paid by the hour. Then, figuring out how much you make per month or year might get a bit confusing and complicated.
That’s why we created this paycheck calculator, also called a pay convertor. It is a very useful tool for employees who get paid on an hourly basis. Our paycheck calculator converts your hourly pay to periodical earnings, like per week, month, and year.
|Annual income||= hourly pay times
40 hours times 52 weeks
|Monthly income||= annual pay divided by 12 months|
|Weekly income||= hourly pay times 40 hours|
These results are generated by multiplying your base hourly salary by the number of hours, weeks, or months you work yearly, assuming that you’re working 40 hours per week.
Minimum Wage in Indiana
So in Indiana, the minimum pay an employer must pay workers is $7.25 an hour. This is $58 per day, $290 per week (if you work 40 hours), $1257 per month, and $15,080 per year.
As said before, not all Indiana employees will receive the state’s minimum wage of $7.25 an hour since several categories of employees are exempt. The minimum rate, for example, does not count for some workers that receive gratuities, some college and high school with part-time jobs, and some more groups.
Minimum wage exemptions in Indiana
While the minimum wage standard applies to most Indiana workers, there are groups of employees that are specifically exempt under state and federal law.
Employers must pay, for example, a base rate of $2.13 an hour to tipped workers, but if the combined amount earned (so including tips) does not reach the $7.25 an hour level, employers are required to make up the difference. But there are more exempt categories:
- Hospital interns, student nurses, agricultural workers, and minors up to 16 years old are exempt from the minimum wage requirements.
- A special training rate of $4.25 an hour may be paid to employees under the age of 18, but only for the first 90 days on the job.
- Full-time college and high school students may receive 85% of Indiana’s minimum wage, so $6.16 an hour, if they are engaged in a university or college work-study program for up to 20 hours a week.
- As said, employees receiving gratuity may receive a cash minimum wage of $2.13 an hour, with $5.12 in tip credit as long as they earn at least $7.25 per hour (including gratuity).
Indiana overtime wage
Indiana labor law mirrors FLSA (Fair Labor Standard Act) regulations regarding overtime. The rules are that when employees work more than 40 hours a week, employers are required to pay a rate of at least 1.5 times (150%) the minimum applicable hourly wage (so $10.88).
Overtime hours are not calculated on a daily basis, so if an employee works over eight hours on a specific day, there’s no requirement to pay overtime for that day. Hours are counted on a weekly basis. There are several workers exempt from overtime regulation, including salespeople, live-in employees, and many commercial drivers.
All Indiana employers must display state-designated minimum wage posters in highly visible and prominent places, so the employees can learn all about Indiana’s minimum wage standards and their obligations and rights under state and federal law.
The Fair Labor Standard Act (FLSA) guarantees that all Indiana workers get compensated adequately for overtime work. If an employer doesn’t pay overtime hours correctly, a claim must be filed with Indiana’s Department of Labor.
What is work time?
Work time consists of all hours an employee is carrying out duties and activities for an employer who initiates and controls those activities.
Work time includes all hours an employee receives relevant education and training. When the position requires traveling, those hours count as work time. Commute time between work and home, however, does not count as work time.
Small breaks (up to 20 minutes max) are seen as work time, but longer breaks are not. Only minor workers are entitled to a 30-minute break, provided their shift is six hours or longer. This 30-minute break must be documented and can be just one break or two. Usually, Indiana employers don’t have to provide adult employees with breaks, but as said before, small breaks count as work time.
Please note that this post doesn’t contain legal advice. If you have any questions about Indiana’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.