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What is the Indiana Minimum Wage?


While the federal minimum wage is $ 7.25, only 21 states have it as their own minimum wage. The other 29 states have minimum wage rates between $ 8.65 and $ 15 in the District of Columbia. With a minimum wage of $ 7.25, a full-time worker earns only $ 290 a week. Such a low income can make it difficult to meet basic needs.

What is the Indiana Minimum Wage?

The current minimum wage in Indiana is only $ 7.25 an hour, the federal minimum wage. This is the lowest rate paid in the country. It's also the same rate that some nearby states like Kentucky and Tennessee pay. However, the minimum wage near Illinois is $ 11.00 per hour and the minimum wage in Michigan is $ 9.87 per hour.

The minimum wage in Indiana has been $ 7.25 since 2009, coinciding with the increase in the federal minimum wage to $ 7.25. Indiana lawmakers introduced several bills to raise the state's minimum wage to $ 10 or $ 9, but all of those bills have failed.

Cost of living has an impact

Indiana minimum wagePhoto by Ronnie George on Unsplash

Although the minimum wage in Indiana is low, the good news is that the cost of living is also low. On a cost of living index with an America average of 100 (and anywhere in Hawaii 191.8), Indiana has a cost of living index of 81, which is much lower. However, the average Indiana home cost of $ 155,640 is hard to afford when you're on the minimum wage. Still, the price of an Indiana home is the 8th in the nation for affordability (Business Insider).

Vogue recently argued that since the minimum wage was fixed at $ 7.25 twelve years ago, "inflation has risen nearly 24% over that period". Obviously, $ 7.25 is not worth as much today as it was then. If you use an inflation calculator, you will find that $ 7.25 in 2009 is equal to $ 9.02 in 2021.

There can be hope for an increase

While many were hoping that when Biden took office, he could raise the federal minimum wage to $ 15, those efforts have stalled right now. The $ 15 minimum wage was originally included in Biden's $ 1.9 trillion stimulus package, but was canceled early to make the package easier to pass on. Biden made it clear that he wants a minimum wage of $ 15, so it may pass at some point during his presidency. This would more than double the current minimum wage in Indiana.

Final thoughts

The minimum wage in Indiana is $ 7.25. This is the federal minimum wage. While this is low, the cost of living in Indiana is also one of the lowest in the country, which helps keep the minimum wage stretching.

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