South Dakota’s minimum wage will increase to $9.30 an hour in 2020, up 20 cents from the current wage of $9.10, according to a press release from the South Dakota Department of Labor and Regulation.

The minimum wage for tipped employees will increase from $4.55 to $4.65 an hour.

 These changes to the minimum wage stem from a yearly evaluation of the cost of living in South Dakota. This is measured through the Consumer Price Index under the United States Department of Labor. 

 This year, the Consumer Price Index indicated a 1.7% increase, which is rounded up to the nearest 5 cents. 

 Tipped employees’ hourly wages must equal $9.30 an hour when tips are considered.  

This increase is due to the passage of Initiated Measure 18 in 2014, which called for an increase to the minimum wage, adjusted annually for inflation.