2023 South Dakota Minimum Wage
The 2023 South Dakota Minimum Wage is $10.80.
Effective 2023-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-09-01
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Hourly | $9.95 | $10.80 | +$0.85 (+8.5%) |
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 from $9.95 to $10.80, effective January 1, 2023. The increase is an annual cost-of-living adjustment under state law (SDCL 60-11-3.2), based on the Consumer Price Index published by the U.S. Department of Labor.
Common questions
- What is the minimum wage for tipped employees?
- The hourly minimum wage for tipped employees is half the regular minimum wage, and wages plus tips combined must equal at least the full minimum wage.
- Does this apply to all employers in South Dakota?
- Yes, with some limited exceptions. The increase applies to virtually all employers in the state.
Who to ask about this rate, and where to take a wage complaint
The South Dakota Department of Labor & Regulation is the state agency responsible for administering and enforcing the minimum wage. For more information about South Dakota's minimum wage laws, including details about exceptions, tipped employees, and employer obligations, visit the department's website at dlr.sd.gov/employment_laws/minimum_wage.aspx. Workers who believe they are not being paid the required minimum wage or who have questions about their rights under South Dakota wage law should contact the Department of Labor & Regulation directly through their website.
For more information, visit 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 law allows employers to pay tipped employees a lower base wage than the standard minimum wage. For 2023, the hourly minimum wage for tipped employees is $5.40 per hour, which is exactly half of the $10.80 per hour minimum wage for non-tipped employees. However, there is an important requirement: when you combine the employer's cash wages with the tips received by the employee, the total must equal at least the full minimum wage. This means that if an employee's tips plus the $5.40 hourly wage do not reach $10.80 per hour, the employer must make up the difference. This system allows employers in tipped industries to pay a lower base rate while ensuring that tipped workers still receive at least the full minimum wage when their tips are included.
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.
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 minimum wage is adjusted each year based on inflation. The state automatically increases the hourly rate by any rise in the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor. This annual adjustment is required by SDCL 60-11-3.2, a law passed by the South Dakota Legislature. For 2023, this cost-of-living adjustment set the minimum wage at $10.80 per hour. The South Dakota Department of Labor & Regulation announces these increases each year based on the CPI data. This ensures that the state's minimum wage keeps pace with inflation rather than requiring new legislation each time prices rise.
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 $9.95/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. 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