PIERRE, S.D. — South Dakota’s minimum wage is set to increase on January 1, 2022.
The state minimum wage rate will go from $9.45/hr. to $9.95/hr. for non-tipped employees – an increase of 50 cents – while the hourly minimum for tipped employees will increase 25 cents to $4.975/hr.
The 50 cent increase is the largest in the last few years; the minimum wage jumped 25 cents from 2018 to 2019, 20 cents from 2019 to 2020, and 15 cents from 2020 to 2021.
The minimum wage is adjusted annually at the same rate as the cost-of-living increase measured in the Consumer Price Index, which is put out by the U.S. Department of Labor. It’s rounded up to the nearest 5 cents and cannot decrease.
The increases apply to all employers in South Dakota, with limited exceptions.
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