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Minimum Wage in South Dakota

South Dakota's minimum wage is $11.85 per hour in 2026 ($5.925 for tipped employees), rising to $12.30 ($6.15 tipped) on January 1, 2027.

Last checked . General information, not legal advice.

South Dakota at a glance

Minimum wage (per hour)
$11.85
Effective January 1, 2026.
Tipped cash wage (per hour)
$5.925
Half of the minimum wage, for employees who customarily receive more than $35 a month in tips, if tips make up the difference.
Next scheduled increase
$12.30 on January 1, 2027
The tipped cash wage rises to $6.15. Adjusted every January 1 by the change in the CPI-U, and never decreased.

Sources

Last checked

The rules in South Dakota

What is the minimum wage in South Dakota in 2026?

Minimum wage (per hour) in South Dakota: $11.85. Effective January 1, 2026.

What is the minimum cash wage for tipped employees in South Dakota?

Tipped cash wage (per hour) in South Dakota: $5.925. Half of the minimum wage, for employees who customarily receive more than $35 a month in tips, if tips make up the difference.

When is the next minimum wage increase in South Dakota?

Next scheduled increase in South Dakota: $12.30 on January 1, 2027. The tipped cash wage rises to $6.15. Adjusted every January 1 by the change in the CPI-U, and never decreased.

Where do the South Dakota minimum wage laws come from?

The rules above come from S.D. Codified Laws 60-11-3, S.D. Codified Laws 60-11-3.1 and S.D. Codified Laws 60-11-3.2. Each source is linked on this page. We last checked them in October 2026.

Good to know

Initiated Measure 18, effective November 13, 2014, created the annual cost of living adjustment. Each increase is rounded up to the nearest five cents and published by October 15.

What this means in practice

Check which rate applies before setting pay. Coverage rules, employer size thresholds, and exemptions for certain jobs or industries differ, and a local ordinance may require more than the state rate. The statute linked on each state page is the starting point.

Where a lower tipped cash wage is allowed, the employer usually must make up the difference whenever tips fall short of the full minimum wage for the pay period. Keeping accurate records of hours worked and tips reported helps show that every pay period met the minimum.

Rates can change on fixed dates, often January 1 or July 1, and some states adjust them each year for inflation. Reviewing pay rates, offer letters, and employment contracts ahead of each scheduled change helps avoid underpayment claims.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.