South Dakota's minimum wage to increase on Jan. 1

South Dakota's minimum wage will increase 20 cents to $9.30 per hour on Jan. 1.

The hourly minimum wage for tipped employees will be $4.65 per hour, effective Jan. 1, and wages and tips combined must equal at least the minimum wage, according to the South Dakota Department of Labor and Regulation.

The state's minimum wage is annually adjusted to the cost of living measured in the Consumer Price Index. This year's increase was 1.7 percent and rounded up to the nearest 5 cents, according to the department.

The increase applies to all South Dakota employers with a few exceptions, such as seasonal amusement or recreation establishments, babysitters, training wages and apprentices.

The last time the state's minimum wage increased was Jan. 1, 2019, when it increased to $9.10.