As of Jan. 1, New Jersey’s minimum wage for most employees increased by 43 cents to $15.92 per hour.
The increase took effect with the start of 2026 and reflects the state’s annual inflation adjustment, which is required by law. Each year, the New Jersey Department of Labor and Workforce Development calculates the new rate using Consumer Price Index data from the U.S. Bureau of Labor Statistics.
While the updated hourly rate now applies to the majority of workers, several groups are subject to separate wage schedules created to soften the financial impact on specific industries. Employees of small businesses with fewer than six workers, as well as seasonal employees, are now earning a minimum of $15.23 per hour, up from $14.53 last year.
Under current law, seasonal wages will continue to rise gradually until 2028, when they are set to reach equivalence with the statewide minimum wage. After that point, their pay will also increase annually based on inflation.
Agricultural workers remain on a longer phase-in timeline. As of Jan. 1, farm employees paid hourly or by piece rate saw their minimum wage increase by 80 cents to $14.20 per hour, compared with $13.40 in 2025, and is scheduled to continue increasing incrementally. However, it’s not expected to fully match the standard minimum wage until 2030.
Tipped workers also received a raise at the start of the year. The minimum cash wage employers must pay tipped employees has increased from $5.62 to $6.05 per hour. Employers may still claim a tip credit — up to $9.87 — but state law requires that a tipped employee’s total earnings, including gratuities, equal at least the full minimum wage of $15.92. If tips fall short, employers are required to make up the difference.
Direct-care staff at long-term care facilities continue to earn a higher minimum wage than most other workers. Their hourly wage has increased by 43 cents this year to $18.92. This higher floor was established under a 2020 state law that set wages for direct-care workers at least $3 above the general minimum wage, an effort aimed at addressing persistent staffing shortages and high turnover rates in long-term care settings.
Although most workers are covered by New Jersey’s minimum wage law, certain exemptions remain in place. These include automobile salespeople, outside sales staff, and some workers under the age of 18, though minors employed in industries such as retail, food service, hospitality and light manufacturing are still entitled to minimum wage protections.
With the 2026 increase now in effect, New Jersey continues to rank among the states with the highest statewide minimum wages in the country. Only Washington ($16.66), California ($16.50) and Connecticut ($16.35) currently have higher statewide rates, though some cities and regions, like Washington, D.C. ($17.95), exceed New Jersey’s wage floor. State law requires that once all phase-in schedules are completed, minimum wage rates for all covered workers will continue to adjust annually with inflation.
