The state minimum wage will increase from $9.95/hour to $10.80/hour effective Jan. 1, 2023.
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. South Dakota implements this annual increase as established by SDCL 60-11-3.2, a law passed by the South Dakota Legislature that took effect on Jan. 1, 2016.
The hourly minimum wage for tipped employees will be $5.40/hour effective Jan. 1, 2023, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.