New Jersey’s minimum wage set to increase to US$15.92 

Photo by Manisha Raghunath on Unsplash
By: Jennifer Blair

The statewide minimum wage in New Jersey is set to increase from US$15.49 to US$15.92 per hour for most employees, effective January 1, 2026, as announced by the New Jersey Department of Labor and Workforce Development (NJDOL).

 

The increase of US$0.43 follows an annual adjustment based on inflation data and continues the state’s efforts to maintain a fair and sustainable wage level for workers. 

 

The update forms part of New Jersey Governor Phil Murphy’s long-term economic plan aimed at improving living standards across the state.

 

Wage Adjustments by Employment Category

 

Specific minimum wage rates for certain worker groups will also be raised:

 

  • The minimum wage for small and seasonal employers will increase from US$14.53 to US$15.23/hour, with gradual increases continuing until 2028.
  • For agricultural workers, the rate will move from US$13.40 to US$14.20/hour, with additional annual increases scheduled through 2030.
  • Long-term care facility staff will see their hourly wage rise by US$0.43 to US$18.92.
  • The minimum cash wage for tipped employees will rise from US$5.62 to US$6.05/hour, while the maximum tip credit remains at US$9.87. Employers are required to ensure total earnings meet the state’s minimum hourly rate.

 

Policy Background

 

New Jersey’s move toward a higher minimum wage began after Governor Phil Murphy took office in 2018, when the rate stood at US$8.60 per hour. 

 

A law introduced in 2019 led to gradual increases that brought the minimum wage to US$15 for most workers by 2024. As such, annual adjustments are now made to reflect changes in the cost of living, in line with state labor policy.

 

Comparison with Other States

 

New Jersey’s minimum wage ranks among the highest rates set in the US. Some states, including California and Washington, have rates above US$16 per hour, while the federal minimum wage has stayed at US$7.25 per hour since 2009. 

 

Related Content:

California cities raise minimum wage from July 1 

British Columbia increases its minimum wage to USUS$17.85

Chicago’s minimum wage to increase amid new labor laws

Bank of America raises minimum wage to USUS$24 per hour in U.S. Locations

See All