Port Authority Proposes Annual Minimum Wage Increases for Airport Workers, Tied to Inflation

New policy includes wage hikes, price adjustments for airport businesses, and public input opportunity

NEWARK AIRPORT - Governor Phil Murphy and Governor Kathy Hochul announced a new Port Authority proposal for annual minimum wage increases at John F. Kennedy International, LaGuardia, and Newark Liberty International airports, aiming to tie future wage adjustments for thousands of airport workers to inflation. The proposal, under public review until December 12, would increase wages beginning in January 2025, marking the first automatic wage adjustments since the agency’s 2018 minimum wage policy, which raised airport worker pay to $19 per hour in September 2023.

Under the new proposal, workers would receive three scheduled raises of $0.75 each in January 2025, July 2025, and January 2026. Starting January 2027, wages would be adjusted annually based on the Northeast region’s Consumer Price Index (CPI) three-year moving average, with the goal of reaching at least $25 per hour by January 2032.

Concession Pricing Adjustments for Airport Businesses

To support businesses facing higher operational costs, the Port Authority also proposed allowing airport concessionaires to adjust pricing up to 15% above local “street prices,” an increase from the current 10% cap, to help offset expenses associated with high-security environments and complex logistics. Concessionaires may also add a 3% surcharge on pre-tax bills for employee benefits and retention.

The Port Authority will monitor compliance with these pricing caps, review customer feedback, and take corrective action if any vendor violates the policy. This proposed change aligns with a common “street pricing plus” policy used by more than 80% of U.S. airports, per Airports Council International North America, which allows similar rate adjustments to manage unique airport operational costs.

Redevelopment and Demand for Skilled Workers

The policy change is part of a larger vision to attract skilled labor as the Port Authority undertakes multibillion-dollar airport redevelopments, including expansions at Newark Liberty and JFK airports. Newark’s new Terminal A, recognized as the world’s best new airport terminal by Skytrax in 2024, and LaGuardia’s Terminal B, awarded a similar honor in 2023, reflect the agency’s focus on elevating customer experience. Upcoming expansions and renovations, including JFK’s $19 billion redevelopment of terminals 1, 4, 6, and 8, will further increase demand for trained airport employees to ensure smooth and secure operations.

Public Comment Period

A 30-day public comment period is open for the proposal. Stakeholders and members of the public are encouraged to submit feedback via the Port Authority website, with all input presented to commissioners before their final vote on December 12.