2021 South Dakota Minimum Wage
The 2021 South Dakota Minimum Wage is $9.45.
Effective 2021-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-09-01
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Hourly | $9.30 | $9.45 | +$0.15 (+1.6%) |
Who it applies to
All South Dakota employers, with some limited exceptions.
What changed this year, and why
South Dakota's hourly minimum wage increased to $9.45, effective January 1, 2021, up from $9.30 in 2020.
Common questions
- How is the South Dakota minimum wage adjusted each year?
- The state minimum wage is adjusted each year based on changes in the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor.
Who to ask about this rate, and where to take a wage complaint
Workers and employers in South Dakota who have questions about the state minimum wage, or who believe their rights have been violated, can turn to the South Dakota Department of Labor & Regulation. The department is headquartered in Pierre and maintains a dedicated page on minimum wage law at its website, where readers can find further details about coverage, exceptions, and how to file a wage complaint. The department also provided a media contact and phone number when announcing the 2021 rate increase, showing that it is the state agency responsible for communicating and enforcing wage rules. Anyone in South Dakota who is not receiving at least the required hourly rate should reach out to this office to learn about filing a claim and enforcing the state's wage protections.
For more information, visit https://dlr.sd.gov/employment_laws/minimum_wage.aspx.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
When tips, meals or lodging count toward the minimum wage
South Dakota allows employers to pay tipped employees a lower direct hourly wage than the standard minimum wage. For workers who regularly receive tips, the minimum cash wage is $4.725 per hour, which is exactly half of the full $9.45 minimum wage that applies to non-tipped employees. However, this lower cash wage does not mean the employer can pay less overall: the employee's tips plus the cash wage must together reach at least the full minimum wage for every hour worked. If an employee's tips in a given pay period are not enough to bring total compensation up to $9.45 per hour, the employer must make up the difference. South Dakota's press release does not address whether the value of meals or lodging can similarly be credited toward the minimum wage; it covers only the tip credit.
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.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
- Hourly
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.
Other years
Every South Dakota Minimum Wage year · Minimum Wage in every state