State employees to receive one-time bonus of up to $2,500

Gov. Mike Braun informed state employees Monday they will receive a one-time bonus in their July 29 paycheck.

But they won’t receive an ongoing pay raise even though state tax revenue collections have been strong.

“Since taking office, I have directed my cabinet secretaries and agency leadership teams to review operations, identify efficiencies, reduce unnecessary costs, and run state government with a more business-minded approach,” Braun said in an email to employees.

“Thanks to those efforts, we are now seeing meaningful results, and I want you to share in that progress. Our stronger fiscal discipline and better management across state government has enabled my administration to provide a one-time bonus to eligible state employees recognizing your hard work and contributions.”

Executive branch employees will receive up to $2,500 depending on their time of service.  It will cost state coffers about $80 million.

Others will be paid as follows:

• Hired before Jan. 13, 2025 (when Braun took office) — $2,500
• Hired between Jan. 14, 2025 and July 1, 2025 — $2,000
• Hired between July 2, 2025 and  Dec. 31, 2025 — $1,000
• Hired during 2026 — nothing

Part-time employees will receive half of what full-time employees get.

Former Gov. Eric Holcomb gave a similar bonus in 2024.

The contingency fund that usually covers salary adjustments was reduced by 90% in the current state budget.

After the budget was implemented in July 2025, a new revenue forecast showed the state could take in more money and accumulate nearby $5 billion in surplus by mid-2027.

The annual closeout for the fiscal year that ended June 30 is scheduled for Wednesday.

Indiana as of Monday had 30,756 state employees — down from 32,100 in January 2025 when Braun took office.