No

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

The state’s 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. Minnesota’s is $11.13 as of June 2025.

South Dakota’s 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 as this one.

Sources

• National Conference of State Legislatures, State minimum wages summary
• KELO-TV, How South Dakota’s 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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