A bipartisan effort in the U.S. Senate aims to raise the federal minimum wage to $15 an hour, with automatic inflation indexing built in. Republican Senator Josh Hawley of Missouri and Democratic Senator Peter Welch of Vermont introduced the legislation on Tuesday. If passed, the boost would take effect next year, coinciding with Missouri’s scheduled increase to the same level, marking the first federal minimum-wage raise since 2009. The automatic increase tied to inflation is designed to prevent future stagnation and ensure the wage keeps pace with the cost of living.
In Indiana, the state minimum wage remains at $7.25 per hour, matching the federal rate that has gone unchanged since 2009. Recent wage data shows that 81 of Indiana’s 83 smaller counties continue to fall below the national average in weekly earnings. However, the state’s nine largest counties—including Marion, Tippecanoe, and Lake—have all experienced annual wage growth ranging from 1.8 percent to as high as 8.8 percent, with Marion County leading the state in wage gains.
Despite Indiana’s relatively lower cost of living compared to the national average, many working residents still face affordability challenges. In 2023, the estimated “housing wage,” or the hourly wage required to afford a modest two-bedroom rental in Indiana without spending more than 30 percent of income on housing, was $22.07. That gap highlights the limitations of the current minimum wage for low-income earners trying to meet basic living expenses.
The federal proposal comes alongside other efforts such as the Raise the Wage Act of 2025, which calls for increasing the minimum wage to $17 by 2030. Supporters argue that raising the wage floor would increase consumer spending, lift families out of poverty, and help close income gaps, especially for women. In Indiana, women earned a median annual income of $35,800 in 2023—about $14,500 less than men.
The proposed legislation could bring significant changes for working families in Indiana and beyond, as the country faces ongoing conversations about wage equity, economic recovery, and the cost of living.
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