Understanding Iowa’s Current Minimum Wage Laws in 2025
If you're working or planning to work in Iowa in 2025, it's important to know the current minimum wage. Understanding your rights and pay expectations helps you make informed financial decisions and ensures you're treated fairly at work.
As of 2025, the state minimum wage in Iowa remains at $7.25 per hour. This rate has not changed since 2008 and matches the federal minimum wage. Iowa has not passed legislation to increase the minimum wage at the state level.
How Iowa Compares: State vs. Federal Minimum Wage
The federal minimum wage is set by the U.S. Department of Labor and applies across all states unless a state sets a higher rate. In Iowa, the state follows the federal minimum wage standard, which also remains at $7.25 in 2025.
Compared to neighboring states and the national movement to raise minimum wage levels, Iowa's rate is on the lower end. Here’s how Iowa compares to some nearby states in 2025:
- Illinois: $15.00 per hour
- Minnesota: $10.85 - $11.50 per hour (based on employer size)
- Missouri: $12.30 per hour
- Nebraska: $12.00 per hour
Iowa workers earning minimum wage are making significantly less than many of their regional counterparts.
Are There Local Minimum Wage Laws in Iowa?
In the past, some counties in Iowa tried to raise the local minimum wage above the state level. For example, Johnson County adopted a higher local wage. However, the Iowa Legislature passed a law in 2017 that prohibits local governments from setting their own minimum wages.
As a result, no city or county in Iowa can legally set a minimum wage that differs from the state minimum of $7.25 per hour.
Is the Minimum Wage in Iowa Expected to Increase in 2025?
As of now, there is no legislation enacted to raise the minimum wage in Iowa in 2025. However, numerous advocacy groups and labor organizations continue to push for wage reform. Proposals to raise the wage to $10 or even $15 per hour have been introduced in past legislative sessions, but none have passed into law.
Who Earns Minimum Wage in Iowa?
Minimum wage jobs in Iowa are common in sectors like:
- Retail and Customer Service
- Hospitality and Food Services
- Home Healthcare and Personal Services
- Agricultural Work
These jobs are often entry-level, seasonal, or part-time. Many minimum wage earners are young adults, but some are adults supporting families.
Tipped Minimum Wage in Iowa: What You Should Know
In Iowa, if you work in a tipped position like waiting tables or bartending, you may receive a lower base wage. The minimum cash wage for tipped workers is $4.35 per hour, provided that your total earnings (including tips) add up to at least $7.25 per hour.
If your tips do not make up the difference, your employer is legally required to pay the remainder.
Minimum Wage Exceptions and Youth Pay
Iowa allows some exceptions to the standard minimum wage, including:
- Trainees: Employers can pay new employees under 20 years old a training wage of $4.25 per hour for the first 90 days of employment.
- Students: Full-time high school or college students working part-time may be paid 85% of the minimum wage, or about $6.16 per hour, under certain conditions.
- Small Business Exemptions: Employers with gross sales under $300,000 may not be required to pay minimum wage under federal law, depending on the nature of the work and employment conditions.
Cost of Living in Iowa vs. Minimum Wage
One major concern is whether $7.25 per hour is a livable wage in Iowa. While Iowa has a lower cost of living than many states, this rate still falls short for many full-time workers. A single adult needs at least $14-$16 per hour to meet basic needs without public assistance in many parts of the state.
Some key expenses that minimum wage workers face include:
- Rent and Utilities
- Groceries
- Transportation
- Healthcare
- Childcare and Education
Because of the wage gap, many minimum wage workers in Iowa may work multiple jobs or rely on assistance programs.
What Can You Do If You're Not Being Paid Fairly?
If you believe you are not receiving the proper wage, you have the right to report it. You can file a complaint with:
- The U.S. Department of Labor’s Wage and Hour Division (WHD)
- Iowa Division of Labor Services
Make sure to keep detailed records of your hours worked, pay received, and correspondence with your employer. Data helps support investigations and protects your rights.
Frequently Asked Questions About Iowa Minimum Wage in 2025
Has Iowa raised the minimum wage in 2025?
No, Iowa has not increased the minimum wage in 2025. It remains $7.25 per hour.
Can cities in Iowa raise the minimum wage locally?
No, a 2017 state law prevents any local government in Iowa from setting a higher minimum wage.
What is the tipped minimum wage in Iowa?
The tipped minimum wage is $4.35 per hour. Employers must ensure that your total wage, including tips, meets or exceeds $7.25 per hour.
Are there exceptions for young workers or trainees?
Yes. Workers under 20 can be paid a training wage of $4.25 per hour for their first 90 days. Some student workers may earn a subminimum wage under federal law.
Will Iowa increase the minimum wage soon?
There are no confirmed changes in 2025. Legislative efforts to raise the wage have been introduced but not passed as of now.
Your Financial Future: What’s Next for Iowa Workers
Whether you're starting your first job or supporting a household, Iowa’s minimum wage affects your daily life. While the current rate remains unchanged, understanding your rights, tracking pay accurately, and staying informed can help you succeed.
Continue to advocate for equitable wages, invest in skill development, and seek employment opportunities that offer better pay and benefits. You deserve compensation that matches your hard work and helps build a secure future.
