Trenton, New Jersey, December 31, 2025
Starting January 1, 2026, New Jersey’s minimum wage will rise to $15.92 per hour, surpassing Pennsylvania’s minimum wage of $7.25. This increase aims to enhance the standard of living for workers and promote economic growth. The wage hike will benefit around 1.2 million New Jersey workers, including those in agriculture and tipped positions, and reflects the state’s ongoing commitment to adjusting wages to meet the cost of living.
Trenton, New Jersey – Minimum Wage Set to Rise to $15.92, Surpassing Pennsylvania’s Rate
Effective January 1, 2026, New Jersey’s minimum wage will increase to $15.92 per hour, marking a $0.43 rise from the previous rate of $15.49. This adjustment continues the state’s commitment to annual wage increases, with the goal of reaching $15 per hour by 2024. Notably, this new rate more than doubles Pennsylvania’s minimum wage, which remains at $7.25 per hour.
Details of the Minimum Wage Increase
The upcoming wage increase applies to most employees in New Jersey. For seasonal and small employers (fewer than six employees), the minimum wage will rise to $15.23 per hour, up from $14.53. Agricultural workers will see their hourly wage increase from $13.40 to $14.20. Tipped employees will experience a boost in their minimum cash wage from $5.62 to $6.05 per hour.
Background on New Jersey’s Minimum Wage Policy
In 2019, New Jersey lawmakers enacted legislation to gradually raise the state’s minimum wage to $15 per hour by 2024. This initiative aimed to provide workers with a livable wage and stimulate the economy through increased consumer spending. The scheduled annual increases have been implemented successfully, with the state now approaching the $16 per hour mark.
Comparison with Neighboring States
As of January 1, 2026, Pennsylvania’s minimum wage remains at $7.25 per hour, the federal standard. This significant difference highlights the disparity in wage policies between neighboring states.
Implications for Workers and Employers
The wage increase is expected to benefit approximately 1.2 million workers in New Jersey, enhancing their purchasing power and contributing to the state’s economic growth. Employers are advised to adjust their payroll systems accordingly to comply with the new wage standards.
Looking Ahead
New Jersey’s ongoing commitment to raising the minimum wage reflects its dedication to improving the standard of living for its workers. The state plans to continue these adjustments annually, ensuring that wages keep pace with inflation and cost of living increases.
Frequently Asked Questions (FAQ)
What is the new minimum wage in New Jersey?
The new minimum wage in New Jersey, effective January 1, 2026, is $15.92 per hour, a $0.43 increase from the previous rate of $15.49.
How does New Jersey’s minimum wage compare to Pennsylvania’s?
New Jersey’s minimum wage of $15.92 per hour is more than double Pennsylvania’s rate, which remains at $7.25 per hour.
Who will be affected by this wage increase?
The wage increase will affect most employees in New Jersey, including those working for seasonal and small employers, agricultural workers, and tipped employees.
What was the purpose of raising the minimum wage in New Jersey?
The purpose was to provide workers with a livable wage and stimulate the economy through increased consumer spending.
Will the minimum wage continue to increase in New Jersey?
Yes, New Jersey plans to continue adjusting the minimum wage annually to keep pace with inflation and cost of living increases.
Key Features of New Jersey’s Minimum Wage Increase
| Feature | Details |
|---|---|
| Effective Date | January 1, 2026 |
| New Minimum Wage | $15.92 per hour |
| Previous Minimum Wage | $15.49 per hour |
| Increase Amount | $0.43 per hour |
| Comparison with Pennsylvania | New Jersey’s rate is more than double Pennsylvania’s rate of $7.25 per hour. |
| Impact on Workers | Affects approximately 1.2 million workers in New Jersey. |
| Employer Compliance | Employers must adjust payroll systems to comply with the new wage standards. |
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