The state minimum wage will increase from $9.30/hour to $9.45/hour effective Jan. 1, 2021.
The minimum wage is annually adjusted by any increase in the cost of living, as measured in the Consumer Price Index published by the U.S. Department of Labor. This year’s increase was 1.3% and is rounded up to the nearest 5 cents.
The hourly minimum wage for tipped employees will be $4.725/hour effective Jan. 1, 2021, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.
These increases will apply to all South Dakota employers, with some limited exceptions. For more information, visit https://dlr.sd.gov/employment_laws/minimum_wage.aspx.