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PHILADELPHIA - New Jersey’s minimum wage is set to increase by $0.56 to $16.48 per hour for most employees beginning Jan. 1, according to the New Jersey Department of Labor and Workforce Development.
Minimum wage changes for different worker categories
What we know:
The Department of Labor says the new wage comes as part of an annual adjustment based on increases in the Consumer Price Index, using data from the U.S. Bureau of Labor Statistics.
Farm workers will see their hourly rate increase to $15, up from $14.20, on Jan. 1. This is the first time farm employees earning an hourly or piece-rate wage are reaching the $15 benchmark under a law that gradually raised their pay over several years.
Direct care staff in long-term care facilities will also get a boost, as their minimum wage goes up by $0.56 to $19.48 per hour. Employees working for seasonal and small businesses, with fewer than six employees, will have their minimum wage set at $16.25, up from $15.23.
How raises are determined and upcoming changes
What they're saying:
The minimum wage in New Jersey is set every year based on Consumer Price Index data, following Article 1, Paragraph 23 of the state constitution and state regulations.
"Fair wages are the foundation of a strong economy," said Acting Labor Commissioner Kevin D. Jarvis. "Reaching the $15 benchmark for our agricultural workforce is a particularly meaningful step toward ensuring equity across industries."
Employees who earn tips, known as tipped workers, will see the minimum cash wage jump to $6.61 per hour from $6.05. The state allows employers to claim a maximum tip credit of $9.87, and if a worker’s tips plus their wage do not meet the state minimum wage, the employer must pay the difference.
By the numbers:
- $16.48 per hour: new minimum wage for most workers
- $15 per hour: new minimum for farm workers
- $16.25 per hour: new minimum for seasonal/small business employees
- $19.48 per hour: new minimum for long-term care facility direct care staff
- $6.61 per hour: new minimum cash wage for tipped workers
- $9.87: maximum tip credit employers can claim
What's next:
Once the planned annual increases for small and seasonal employers finish in 2028, and for farm workers in 2030, all minimum wage rates will continue to be updated yearly using Consumer Price Index data from the U.S. Bureau of Labor Statistics.
The Source: This article contains information from the New Jersey Department of Labor and Workforce Development.