Jelani Gibson
nj.com
(TNS)
New Jersey workers will be ringing in the New Year with an increased minimum wage.
The minimum wage will increase by 43 cents to $15.92 per hour on Jan. 1, under the state’s law.
The increase is the latest in a string of minimum wage hikes that began under Gov. Phil Murphy‘s administration.
When Murphy took office in 2018, the minimum wage was $8.60 an hour. A 2019 law signed by Murphy, a Democrat, set the stage for annual hikes. The law was designed to give workers more financial stability.
However, the wage increase doesn’t apply to all jobs, and some industries have different rates.
Seasonal and small employers will be required to raise their minimum pay at the start of 2026, but their rate will remain lower. Their minimum wage will move from $14.53 to $15.23.
Other workers affected by the Jan. 1 increases include:
- Agricultural workers, who will see their minimum wage increase from $13.40 to $14.20 per hour.
- Home health aides, whose minimum pay will go up 43 cents to $18.92 per hour.
- Tipped workers, whose base wage will increase from $5.62 to $6.05 per hour. Employers must make up the difference if tips don’t reach the state minimum.
State Labor Commissioner Robert Asaro-Angelo called the minimum wage law “a major step toward economic equity.”
The law also calls for more increases based on the consumer price index and data from the U.S. Bureau of Labor Statistics.
“Governor Murphy’s administration has delivered on its promise to create a stronger, fairer economy by nearly doubling the minimum wage since 2018,” Asaro-Angelo said in a statement. “Annual increases tied to the Consumer Price Index will empower New Jersey workers for years to come.”
The New Jersey Business and Industry Association expressed concerns about the increase.
“The market is the best, natural determinant of wages,” NJBIA CEO Michele Siekerka said. “But the truth is, many entry-level positions already exceeded the $1-per-year increase over the past five years, especially after COVID.”
Business for a Fair Minimum Wage, an organization of business owners that supports the wage increase, said higher pay benefits everyone.
“Higher wages strengthen the economy — workers have more buying power and businesses see more consumer demand,” said Mitch Cahn, a member of the group and owner of Unionwear, a clothing company in Newark.
“When you invest in employees, you keep experienced workers who are skilled and efficient. Strong morale drives strong performance,” Cahn said.
©2025 Advance Local Media LLC. Visit nj.com. Distributed by Tribune Content Agency, LLC.
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Tags: minimum wage, new jersey, Payroll
