By Dean Welte
October 10, 2019
PIERRE, S.D. (KTIV) – South Dakota’s minimum wage is set to increase by 20 cents next year.
The state minimum wage will increase from $9.10 per hour to $9.30 per hour on Jan. 1, 2020.
According to the South Dakota Department of Labor, the minimum wage is annually adjusted by any increase in the cost of living, as measured in the Consumer Price Index.
The CPI is “a measure of the average change over time in prices paid by urban consumers for goods and services.” In other words, it indicates the cost of living for a typical consumer.
This year’s increase was 1.7 percent and is rounded up to the nearest 5 cents.
The hourly minimum wage for tipped employees will be $4.65 per hour effective Jan. 1, 2020, half the minimum wage for non-tipped employees.
Wages and tips combined must equal at least the minimum wage.