2025 South Dakota Minimum Wage
The 2025 South Dakota Minimum Wage is $11.50.
Effective 2025-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-09-01
Compared with 2024
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Hourly | $11.20 | $11.50 | +$0.30 (+2.7%) |
Who it applies to
All South Dakota employers, with some limited exceptions. The adjustment applies to non-tipped and tipped employees.
What changed this year, and why
South Dakota's state minimum wage for non-tipped employees increased from $11.20 per hour in 2024 to $11.50 per hour, effective January 1, 2025. The tipped employee minimum wage is half the non-tipped rate, also effective January 1, 2025.
Common questions
- How is the South Dakota minimum wage adjusted each year?
- 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, under SDCL 60-11-3.2.
- What must employers ensure for tipped employees?
- The hourly minimum wage for tipped employees is half the non-tipped minimum wage. Employers must ensure that wages and tips combined equal at least the full minimum wage.
Who to ask about this rate, and where to take a wage complaint
The South Dakota Department of Labor & Regulation is the state agency that oversees minimum wage rules. The Department's office is located in Pierre, South Dakota. For more information about the state's minimum wage, including the current rate and how it is calculated, the Department directs the public to its website at dlr.sd.gov/employment_laws/minimum_wage.aspx. Workers or employers in South Dakota with questions about whether they are being paid the correct rate should consult that resource. This press release does not describe a specific process for filing a wage complaint.
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
In South Dakota, employers can pay tipped employees a lower hourly wage than the regular minimum wage. For 2025, that tipped wage is $5.75 per hour, which is half of the standard minimum wage. However, there's an important requirement: the employee's wages plus their tips must add up to at least the full minimum wage. If an employee's tips don't bring their total compensation up to the regular minimum wage rate, the employer must make up the difference. This ensures that tipped workers in South Dakota receive at least the standard minimum wage when you count both their direct wages and their tips together.
The hourly minimum wage for tipped employees will be $5.75/hour effective Jan. 1, 2025, 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 for non-tipped employees will increase from $11.20/hour to $11.50/hour effective Jan. 1, 2025. 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 implements this annual increase as established by SDCL 60-11-3.2, a law passed by the South Dakota Legislature that came into effect on Jan. 1, 2016. The hourly minimum wage for tipped employees will be $5.75/hour effective Jan. 1, 2025, 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