Starting on Jan. 1, the minimum wage in New Jersey will increase by 43 cents per hour for most employees, bringing it to $15.92.
The minimum wage for employees of seasonal and small employers will gradually rise until 2028. The hourly wage will increase to $15.23 for these employees from $14.53.
Agricultural workers are guided by a separate minimum wage timetable, and their minimum wage rate will continue to increase incrementally until 2030. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $14.20, up from $13.40.
Long-term care facility direct care staff will see their minimum hourly wage rise by 43 cents to $18.92.
The minimum cash wage rate for tipped workers will increase to $6.05 an hour from $5.62, with the maximum tip credit that employers can claim remaining at $9.87. If the minimum cash wage and tips do not equal at least the state minimum wage, the employer must pay the difference.
The minimum wage in New Jersey increased to $15.49 from $15.13 per hour for companies with seven or more employees on Jan. 1, 2025.
“Eight years ago, Gov. Murphy pledged a stronger, fairer economy, and we’re delivering on this commitment by raising New Jersey’s minimum wage again,” said Labor Commissioner Robert Asaro-Angelo. “This increase will provide vital support to all Garden State workers by making the dream of a livable wage reality.”
At the current minimum wage of $15.49, New Jersey has the sixth-highest minimum in the nation behind the District of Columbia ($17.50), Washington state ($16.66), California and New York ($16.50), and Connecticut ($16.35). The federal minimum wage rate is $7.25, unchanged since 2009.
Proponents of raising the minimum wage say it would improve the overall standard of living for minimum wage workers by providing enough income to better manage the cost of living. Advocates for lifting the minimum say it would reduce the need for federal and state government expenditures on financial aid for low-income individuals.
Opponents argue that raising the minimum wage would likely result in wages and salaries increasing across the board, boosting operating expenses for companies. This would then hike the prices of products and services to cover their increased labor costs.
Higher prices could also mean a general increase in the cost of living, which might negate any advantage gained by workers having more dollars in their pockets. Another projected problem resulting from an increased minimum wage is that of potential job losses.
