South Dakota minimum wage 2027.

The South Dakota minimum wage in 2027

South Dakota's minimum wage for non-tipped employees will be $12.30 an hour effective January 1, 2027, up from $11.85, and the rate for tipped employees will be $6.15 an hour. The Department of Labor and Regulation states both on its minimum wage page and in its 2027 poster.

What changed from 2026

The statewide rate rises 45 cents, from $11.85 to $12.30. The tipped wage rises from $5.925 to $6.15, which is 50 percent of the full minimum under SDCL 60-11-3.1. Employers with tipped workers must make sure they receive no less than the current minimum wage and keep a record of all tips received.

Coverage, exemptions and tipped employees

The 2027 poster says South Dakota minimum requirements apply to all employees, but no minimum wage requirements apply to independent contractors. The department's page lists exemptions for seasonal amusement or recreation establishments, babysitters and outside salespersons (SDCL 60-11-3 and 60-11-3.1), a training wage under SDCL 60-11-4.1, and apprentices and people with a developmental disability under SDCL 60-11-5. Tipped employees' cash wage must be no less than 50 percent of the state minimum wage.

How the rate is set

South Dakota adjusts the minimum wage each year by any increase in the cost of living, measured by the Consumer Price Index published by the U.S. Department of Labor. The increase is rounded up to the nearest five cents, the minimum wage cannot decrease, and the department says it will announce the new rate on its web page no later than October 15 each year.

Worked example (2027)

A full-time worker at the South Dakota 2027 minimum of $12.30 an hour, 40 hours a week, earns $492.00 a week, $984.00 every two weeks, $2,132.00 a month and $25,584.00 a year (2,080 hours) before tax. At the 2026 rate of $11.85 the same schedule paid $24,648.00 a year, so the 2027 rate adds $936.00. For a tipped worker the direct cash wage is $6.15. With 30 hours a week and tips averaging $4.00 an hour, pay is $10.15 an hour against a $12.30 minimum, so the employer owes a top-up of $2.15 an hour, $64.50 for the week. Part-time at 25 hours a week is $307.50 a week and $15,990.00 a year.

Method

The converter multiplies the hourly rate by your hours per week for weekly pay, doubles it for two weeks, multiplies by 52 weeks (2,080 hours at 40 a week) for annual pay and divides the annual figure by 12 for a month. It is gross pay before tax. The tipped-worker check adds the $6.15 cash wage and your average tips per hour and compares the total with the $12.30 minimum. If the total falls short, the shortfall times your hours is the top-up the employer owes for the week. Figures were read from the sources below on November 9, 2026.

What this does not cover

• Overtime, which is a separate rule, and unpaid time off.
• Local minimum wages that are higher than the state rate. Check the city or county where the work is done.
• Special rates for students, trainees, small employers or other exemptions not named on this page.
• Taxes and deductions: South Dakota pay here is gross pay before tax.

Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.

Sources

• South Dakota Department of Labor and Regulation: minimum wage (retrieved November 9, 2026)
• South Dakota Department of Labor and Regulation: 2027 minimum wage poster (PDF) (retrieved November 9, 2026)