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South Dakota Department of Labor & Regulation
123 W. Missouri Ave.
Pierre, SD 57501
For Immediate Release: Thursday, Oct. 23, 2025
Media Contact: Dawn Dovre, 605-773-3101
State Minimum Wage to Increase Jan. 1
PIERRE, S.D. – The state minimum wage for non-tipped employees will increase from $11.50/hour to $11.85/hour effective Jan. 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 Jan. 1, 2016.
The hourly minimum wage for tipped employees will be $5.925/hour, effective Jan. 1, 2026, 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 dlr.sd.gov/employment_laws/minimum_wage.aspx.
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