2022 South Dakota Minimum Wage
The 2022 South Dakota Minimum Wage is $9.95.
Effective 2022-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-09-01
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Hourly | $9.45 | $9.95 | +$0.50 (+5.3%) |
Who it applies to
All South Dakota employers, with limited exceptions.
What changed this year, and why
South Dakota's state minimum wage increased to $9.95 per hour, up from $9.45 per hour in 2021. The adjustment is based on the cost of living as measured by the Consumer Price Index.
Common questions
- When did the new minimum wage take effect?
- The $9.95 per hour minimum wage took effect on January 1, 2022.
- Why does the minimum wage change each year?
- South Dakota law requires an annual adjustment based on increases in the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor.
When tips, meals or lodging count toward the minimum wage
In South Dakota, employers may pay tipped employees a lower direct hourly wage than the standard minimum wage, provided that tips bring the worker's total earnings up to at least the full minimum wage. For 2022, the direct cash wage for tipped workers is $4.975 per hour, which is exactly half of the full minimum wage of $9.95 per hour. South Dakota law requires that an employee's direct wages plus tips received must together equal at least the full minimum wage. If a tipped employee's tips in a given pay period are not enough to bring their total hourly compensation to $9.95, the employer is responsible for paying the difference. This press release addresses only the tip credit; it does not state whether meal or lodging credits may also be applied toward meeting the minimum wage in South Dakota.
The hourly minimum wage for tipped employees will be $4.975/hour effective Jan. 1, 2022, 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 the rate is adjusted each year, and who announces it
South Dakota's hourly minimum wage is adjusted each year to account for changes in the cost of living. The adjustment is tied to the Consumer Price Index, which is published by the U.S. Department of Labor. If the index shows that prices have risen, the state minimum wage goes up by a corresponding amount. For the year starting in January 2022, this cost-of-living adjustment set South Dakota's minimum wage at $9.95 per hour. The South Dakota Department of Labor & Regulation calculates and announces the new rate each year based on the index figures. This annual adjustment mechanism has been part of South Dakota law since it was enacted by the state Legislature. Workers and employers in South Dakota can expect the minimum wage to change each year in line with inflation as measured by the federal Consumer Price Index.
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.
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 $9.45/hour to $9.95/hour effective Jan. 1, 2022. 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 Jan. 1, 2016. The hourly minimum wage for tipped employees will be $4.975/hour effective Jan. 1, 2022, 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