The New Jersey statewide minimum wage will increase to $15.92 per hour for most employees on January 1.
This 43-cent increase from the 2025 rate of $15.49 is mandated by a 2013 state constitutional amendment that requires annual adjustments to the minimum wage based on changes in the Consumer Price Index (CPI), a standard measure of inflation. The adjustment ensures that the purchasing power of low-wage workers is maintained even as the cost of living fluctuates.
While the majority of the state’s workforce will transition to the $15.92 rate, several specific categories of workers remain on different schedules as part of a multi-year phase-in designed to help specific industries manage rising labor costs.
Employees of small businesses with fewer than six workers, as well as seasonal employees, will see their minimum wage rise from $14.53 to $15.23 per hour. These groups are scheduled to reach the general minimum wage rate by 2028. Agricultural workers will also see an increase, with their hourly rate rising from $13.40 to $14.20.
Under current state law, farm workers are on a slower path to parity and are expected to reach the $15.00 mark by 2027, with final alignment with the statewide rate scheduled for 2030.
Meanwhile, direct care staff at long-term care facilities will continue to receive a $3.00 premium over the general minimum wage, bringing their new hourly rate to $18.92.
For tipped employees, the minimum cash wage paid by employers will increase to $6.05 per hour, up from $5.62. The maximum tip credit that employers can claim against an employee’s wages remains $9.87. New Jersey law stipulates that if an employee’s cash wage plus tips does not equal at least the general state minimum wage of $15.92, the employer is legally obligated to pay the difference.
This latest adjustment marks the second year of inflation-based increases since the state successfully reached its milestone $15.00 minimum wage for most workers in 2024. Labor Commissioner Robert Asaro-Angelo noted that the increase provides vital support to Garden State workers by aligning wages with economic realities.
Since Governor Phil Murphy took office in 2018, when the minimum wage was $8.60, the rate has increased by nearly 85 percent.
The new rates will take effect automatically at the start of the New Year.