(INDIANAPOLIS) - Indiana state employees will receive one-time bonuses of up to $2,500 later this month, but no ongoing pay raise.
The Indiana Capital Chronicle reports Gov. Mike Braun informed state employees Monday that eligible executive branch workers will receive bonuses in their July 29 paychecks.
The amount will depend on when an employee began working for the state.
Full-time employees hired before Braun took office on Jan. 13, 2025, will receive $2,500. Those hired between Jan. 14 and July 1, 2025, will receive $2,000. Employees hired between July 2 and Dec. 31, 2025, will receive $1,000.
Employees hired during 2026 will not receive a bonus. Part-time employees will receive half the amount paid to full-time workers in the same service category.
The bonuses are expected to cost the state about $80 million.
Braun told employees that efforts to find efficiencies, reduce unnecessary costs and improve management across state government made the bonuses possible.
The bonuses come as Indiana tax collections have been strong, but the contingency fund typically used for salary adjustments was cut by 90% in the current state budget.
The Indiana Capital Chronicle reports a revenue forecast released after the budget took effect in July 2025 projected the state could accumulate nearly $5 billion in surplus by the middle of 2027.
Indiana had 30,756 state employees as of Monday, down from about 32,100 when Braun took office in January 2025.
The state's annual fiscal year closeout is scheduled for Wednesday.