Labor Day is just around the corner. While the holiday was founded to recognize and thank workers across the country, many states haven’t increased minimum wage in years, including Indiana.
Here’s what to know.
What is minimum wage in Indiana?
Minimum wage in Indiana is $7.25 an hour and has been since 2009, when the federal minimum wage was increased from $6.55, according to the Indiana Department of Labor.
Employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit. If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
What is considered a living wage in Indianapolis?
According to MIT’s Living Wage Calculator in Indianapolis, a living wage (for full-time employment) for one adult without children is $21.54 an hour, which is almost three times the current state minimum wage.
One child increases that living wage to $40.30 an hour, two children to $51.31 an hour and three children to $64.48 an hour, . Those rates are almost six, seven and nearly nine times the state minimum wage of $7.25.
When is Labor Day?
Monday, Sept. 1, 2025, is Labor Day. The holiday is held annually on the first Monday in September.
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Why do we celebrate Labor Day?
You can thank organized labor groups for getting Labor Day on the national calendar, just like you can thank them for enshrining an eight-hour workday as opposed to toiling 12 hours a day for pennies on the dollar.
“Labor activists pushed for a federal holiday to recognize the many contributions workers have made to America’s strength, prosperity, and well-being,” according to the U.S. Department of Labor.
John Tufts covers trending news for IndyStar and Midwest Connect. Send him a news tip at JTufts@Gannett.com. Find him on BlueSky at JohnWritesStuff.
Katie Wiseman covers trending news for IndyStar and Midwest Connect. Contact her at klwiseman@gannett.com. Follow her on Bluesky @katiewiseman
This article originally appeared on Indianapolis Star: What is minimum wage in Indiana? When did it last increase?