Minimum Wage In Iowa in 2023



The minimal wage in Iowa is $7.25 an hour. That is the federal minimal wage, which signifies that Iowa employers are required to pay staff at the very least this quantity per hour.

Along with federal minimal wage legal guidelines, many states have guidelines relating to how a lot an employer will pay workers and the way typically they should be paid. Along with state regulation necessities, some native governments have enacted minimal wage ordinances that set greater base wages for staff of their jurisdictions than what’s required by federal or state regulation.

What Is the Present Minimal Wage in Iowa?

The minimal wage in Iowa is $7.25 per hour. This is similar because the federal minimal wage.

The minimal wage is a base charge of pay set by the federal government that employers should pay their workers. This charge varies by state however usually ranges between $7.25 and $16.10 per hour, relying on the place you reside or work. Some states have completely different charges for sure professions or industries as properly. Nonetheless, typically talking, that is the quantity that almost all staff ought to count on to earn when starting a new job with no experience or {qualifications} beneath their belt in any respect.

Why Does the Minimal Wage Exist?

The aim of minimal wage legal guidelines is to guard low-wage staff from exploitation by their employers. Minimal wages present some financial safety for staff who may in any other case be weak to exploitation by unscrupulous employers who would benefit from them by paying below-market wages or requiring extreme work hours with out further compensation.

The FLSA units a federal minimal wage for all states and territories, however state legal guidelines could set greater minimal wages so long as they meet or exceed the federal normal. The federal authorities doesn’t set the utmost quantity of hours employers can require from their workers, however many states have such limits and require time beyond regulation pay for work past these limits.

What’s the price of residing in Iowa in 2022?

The price of residing in Iowa is about 10% decrease than the nationwide common. Value of residing measures how a lot it prices to stay in a particular metropolis or nation. It compares the price of residing between completely different places based mostly on the costs of products, companies, and different components comparable to bills, salaries, and foreign money alternate charges. People typically use the measure when deciding the place to stay based mostly on the standard of life, security, and profession alternatives.

In accordance with the Financial Coverage Institute Household Price range Calculator, a single particular person requires $3,061 month-to-month to keep up a modest lifestyle in Iowa which interprets to $36,728 yearly.

The EPI’s household finances estimates embrace meals, housing, transportation, and well being care prices. The information is collected by surveying state and county businesses on the price of residing in every space.

What are the various kinds of Minimal Wages in Iowa?

Iowa has a number of various kinds of minimal wage legal guidelines. These legal guidelines are designed to guard staff and be sure that they’re paid a good wage for the work that they do.

Normal Minimal Wage

The usual minimal wage is the bottom quantity that an employer will pay their workers for an hour of labor. The usual minimal wage in Iowa is $7.25 per hour. Which means if you’re paid lower than $7.25 per hour, your employer could also be violating Iowa’s Truthful Labor Requirements Act (FLSA). The FLSA is a federal regulation that applies to all 50 states and determines which state legal guidelines on minimal wage are outmoded by the FLSA.

Beneath 20 Minimal Wage

In case you are beneath 20 years outdated and dealing at the very least 40 hours per week, you can’t be paid lower than $4.25 per hour in Iowa. In case you are beneath 18 years outdated and dealing at the very least 28 hours per week, you can’t be paid lower than $3.58 per hour in Iowa. Which means if you’re working at the very least 28 hours per week and your employer pays you lower than $3.58 per hour or $4.25 per hour relying in your age, they could be violating Iowa’s Employment of Minors Legislation (EML).

Tipped Minimal Wage ($2.90)

In Iowa, employers should not required to pay tipped workers a full minimal wage. As a substitute, Iowa employers could pay tipped workers $2.90 per hour and rely ideas as a part of their wages, so long as the worker earns at the very least $7.25 per hour in ideas by the tip of their shift. This is called a “tip credit score.” Employers could not declare this tip credit score in the event that they pay workers a flat charge of lower than $7.50 per hour or in the event that they cut back their workers’ wages to permit them to fulfill this requirement.

Scholar Minimal Wage ($6.16)

Iowa’s pupil minimal wage regulation permits employers to pay students who work during school vacations, holidays, or summer season breaks a minimum of 85% of Iowa’s non-tipped minimal wage charge at present $6.16. This regulation doesn’t apply if an employer is paying college students for precise employment duties or when an worker is required to be current on the premises throughout faculty hours.

Additional time in Iowa 

Additional time is time labored above 40 hours per week or eight hours per day. For every hour of time beyond regulation, you should be paid 1 1/2 instances your common hourly charge of pay; $10.88. There isn’t any restrict to the variety of hours an employer could require an worker to work, offered that every one relevant legal guidelines are adopted and that the worker receives time beyond regulation compensation on the required charge of pay.


During the last a number of years, the minimal wage has elevated at a fast tempo. There’s a lot confusion concerning the minimal wage and what impression it should have on employers in Iowa. Some employers are involved concerning the monetary pressure {that a} greater minimal wage could have on their operations. Then again, some critics recommend {that a} greater minimal wage might not be good for enterprise and will result in job losses in Iowa.


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