New Jersey's minimum wage will see an increase of 36 cents, bringing it to $15.49 per hour for most employees, effective January 1, 2025. The New Jersey Department of Labor and Workforce Development (NJDOL) announced the increase, which is based on the Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.
The increase is part of a broader initiative to raise the minimum wage in the state. When Governor Phil Murphy took office in 2018, the state's minimum wage was $8.60 per hour. In February 2019, Governor Murphy signed legislation to gradually increase the state's minimum wage to at least $15 per hour by 2024 for most employees.
According to the NJDOL, the minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028. The minimum hourly wage for these employees will increase to $14.53 on January 1, 2025, up from $13.73.
Agricultural workers, who are guided by a separate minimum wage timetable under the law, will see their minimum wage rate increase incrementally until 2030. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $13.40, up from $12.81.
The minimum cash wage rate for tipped workers will rise to $5.62/hour from $5.26, with the maximum tip credit employers are able to claim remaining at $9.87. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.