Increase in NJ Minimum Wage

New Jersey's minimum wage has increased to $14.13 per hour for most employees, effective January 1, 2023. This increase is part of legislation signed by Governor Murphy in 2019 that gradually raises the minimum wage to $15 per hour by 2024 for most employees. 

When Governor Murphy took office in 2018, the state's minimum wage was $8.60 per hour, and increasing the minimum wage was immediately identified as a legislative priority. Under the current law, the minimum wage increases by $1 per hour each year, or more if warranted due to significant increases in the Consumer Price Index (CPI).

The New Jersey Department of Labor and Workforce Development (NJDOL) determines the minimum wage for the coming year using either the rate specified in the law or a calculation based on the CPI, whichever is higher. Once the minimum wage reaches $15 per hour, it will continue to increase annually based on any increases in the CPI, according to the State Constitution.

Seasonal and small employers have until 2026 to pay their workers $15 per hour. The minimum hourly wage for these employees will increase to $12.93 on January 1, up from $11.90. 

Agricultural workers, who are governed by a separate minimum wage timetable, have until 2027 to reach the $15 per hour minimum wage. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $12.01, up from $11.05. 

Additionally, long-term care facility direct care staff will see their minimum wage rise by $1.13 to $17.13.

Tipped workers' cash wage will increase to $5.26 per hour, with employers able to claim an $8.87 tip credit, an increase of the maximum allowable tip credit of $1. If the minimum cash wage plus an employee's tips do not equal at least the state minimum wage, the employer must pay the employee the difference.

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