The state minimum wage for non-tipped employees increased from $11.50 per hour to $11.85 per hour. The change became effective January 1, 2026. The minimum wage is adjusted annually based on increases in the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor.
South Dakota adjusts its minimum wage annually as established by SDCL 60-11-3.2, a law enacted by the state legislature and effective since January 1, 2016. The hourly minimum wage for tipped employees will be $5.925 per hour – half the minimum wage for non-tipped employees – effective January 1, 2026. Wages and tips combined must equal at least the minimum wage.
The increases apply to all South Dakota employers, with some limited exceptions. For more information, visit dlr.sd.gov/employment_laws/minimum_wage.aspx.
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