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South Dakota’s lowest wage earners are set for a pay bump in the months ahead.
The state Department of Labor and Regulation is reminding employers that minimum wage in South Dakota will climb again in the new year – this time from $11.50 to $11.85 an hour for non-tipped employees.
The increase marks the latest annual adjustment under a state law that ties the minimum wage to inflation. Each year, the rate is recalculated based on changes in the Consumer Price Index, a federal measure of the cost of living published by the U.S. Department of Labor.
The adjustment is 3 percent this year.
The newly set minimum wage takes effect annually on Jan. 1, a result of a voter-approved measure adopted in 2014, which also set a lower minimum wage for waiters, waitresses, and other tipped employees. Employers in South Dakota will be required to pay those workers a minimum of $5.93 an hour in 2026, though wages and tips combined must still meet the $11.85 threshold, according to the labor office.
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