South Dakota
South Dakota minimum wage increases to $11.85 per hour
RAPID CITY, S.D. (KOTA) — South Dakota has an annual New Year’s Day tradition: an increase in the minimum wage for non-tipped workers.
On Thursday, Jan. 1, 2026, the state minimum wage increases from $11.50 an hour to $11.85. The 35-cent pay hike is based on increases in the cost of living as measured by the Consumer Price Index published by the U.S. Department of Labor.
The annual increases have been in place since 2016 when the South Dakota Legislature enacted a law to automatically adjust the state minimum wage. It is one of 34 states that set the minimum wage above the federal rate.
The tipped employee hourly minimum wage will go to $5.925 an hour, which is half the minimum wage for non-tipped workers. Wages and tips combined must equal at least the minimum wage.
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