South Dakota’s minimum wage continues to rise each year in step with the Consumer Price Index (CPI). It is already higher than the federal minimum, setting it far ahead of North Dakota, but it’s not yet at the popular $15 per hour mark.
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2020 Minimum Wage in South Dakota: $9.30 per hour
There are also exemptions for minimum wage in line with the Federal Fair Labor Standards Act (FLSA). These include: seasonal amusement or recreational establishment employees; babysitters or outside salespersons; trainees and apprentices; and people with developmental disabilities.
Tipped: $4.65 per hour
The minimum tipped wage in South Dakota is $4.65 per hour, which does not include the amount provided by tips. There is a $4.65 tip credit. In total, a tipped employee will receive no less than $9.30 per hour. This is higher than what is required by the FLSA and meets the state general minimum wage.
The weekly income for employees in South Dakota earning minimum wage is $372. This assumes a typical 40-hour workweek at the $9.30 per hour rate, but doesn’t take into account an individual’s income tax withholdings.
The annual income for employees in South Dakota earning minimum wage is $19,344. This estimate assumes a typical 52-week per-year, 40-hour per-week position at the $9.30 per hour rate. Again, it does not account for any withholding, so the actual take-home pay will be lower for minimum wage workers. Additionally, the actual number may be different due to a worker not working full time or taking unpaid time off. This amount also does not include any holiday pay.
For comparison, an E1 private in the Army makes $20,797.20. There are many advantages and disadvantages to military careers that don’t affect most civilian jobs, and low pay is an aspect that is rarely considered by the general public.
Overtime: $13.95 per hour
Once an employee in South Dakota exceeds 40 work hours in a week, they begin earning overtime pay. This assumes the federal rate of 1.5 times the state minimum wage of $9.30. This equals $13.95 per hour.
South Dakota Minimum Wage Increase News
South Dakota’s minimum wage is tied to the CPI, which is designed to rise along with inflation, thanks to a 2004 state amendment. The state minimum wage is re-evaluated each year, increasing with the index, and rounded to the nearest 5 cents. The minimum wage cannot decrease, even if the index does.
The minimum wage increased by 20 cents from $9.10 to $9.30 per hour on January 1, 2020. This was a 2.2% increase. There are no other current plans to increase the minimum wage, beyond these CPI-based increases.
If the yearly increase does not keep up with your personal cost of living, consider asking for a raise or taking part in the gig economy, where it is possible to earn more money depending on how many assignments you take.
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