Does South Dakota have the nation’s lowest minimum wage?

No

South Dakota is one of 34 states and territories that have a minimum wage higher than the federal rate.

The states minimum wage of $11.50 an hour increased from $11.30 on Jan. 1, 2025, compared to the federal minimum wage of $7.25. It had not been changed since 2009.

That sets South Dakota apart from several regional states. North Dakota, Wyoming and Iowa all have minimum wages set to the federal rate. Only Nebraska ($13.50) has a rate higher than South Dakota. Minnesotas is $11.13 as of June 2025.

South Dakotas minimum wage changes annually, increasing at the same rate as the cost of living set by the Consumer Price Index.

The federal rate is lower than the poverty level of $15,650 a year, set by the Department of Health and Human Services guidelines. A worker earning the federal minimum makes $15,080.

This fact brief responds to conversations such asthis one.

Sources

• National Conference of State Legislatures,State minimum wages summary
• KELO-TV,How South Dakotas minimum wage increase stacks up
• South Dakota Department of Labor,South Dakota Minimum Wage
• U.S. Department of Labor,State minimum wage laws
• Economic Policy Institute,The federal minimum wage is officially a poverty wage in 2025

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This story was produced bySouth Dakota News Watch, an independent, nonprofit organization. Read more and donate atsdnewswatch.organdsign up for an emailstory summary on most weekdays that links to the full version.Contact Michael Klinskiat[email protected].