PIERRE, S.D.(Press Release)- South Dakota Minimum Wage
The minimum wage is annually adjusted by any increase in cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor. In no case may the minimum wage be decreased.
Non-tipped Employees
The minimum wage for non-tipped employees in South Dakota was $11.50/hour in 2025
Effective Jan. 1, 2026, the minimum wage for non-tipped employees in South Dakota will be $11.85/hour.
Tip Credit (Tipped Employees)
The minimum wage for tipped employees in South Dakota was $5.75/hour in 2025.
Effective Jan. 1, 2026, the minimum wage for tipped employees in South Dakota will be $5.925/hour.
The employer must make sure the employees receive no less than the current minimum wage and must keep a record of all tips received by employees.
Annual Increase
South Dakota’s non-tipped minimum wage will be adjusted on an annual basis, increasing at the same rate as the cost of living as measured in the Consumer Price Index published by the U.S. Department of Labor. The amount of the increase will be rounded up to the nearest 5 cents. The minimum wage cannot decrease.
The new adjusted rate will be announced on this web page for the following year no later than Oct. 15 of each year.
Exemptions
- Seasonal amusement or recreation establishments, babysitters or outside salespersons. See SDCL 60-11-3 and 60-11-3.1.
- Training wage. See SDCL 60-11-4.1.
- Apprentices, person with a developmental disability. See SDCL 60-11-5.