Most New Jersey business owners already know the state has been steadily increasing its minimum wage with scheduled annual adjustments. Beginning January 1, 2026, the minimum wage will again rise to reflect the inflation-based increase required under state law.
What is the New NJ Minimum Wage Rate?
As of January 1, 2026, the statewide minimum wage for most employees will be $15.92 per hour. This is a $0.43 increase from 2025’s minimum wage of $15.49 per hour.
Exceptions for NJ Minimum Wage
Seasonal and small businesses (fewer than 6 employees) will see their minimum wage increase to $15.23/hour on January 1, 2026.
The rate for agriculture workers will see a raise in minimum hourly wage to $14.20. Agricultural employers were given until 2027 to reach the $15.00 per hour wage rate to help lessen the impact on their businesses.
Tipped workers’ cash wage will increase to $6.05/hour, with employers able to claim an $9.87 tip credit. If tips combined with the cash wage do not meet the required minimum wage, employers must make up the difference.
Long-Term Care Facility Direct Care staff will see their minimum hourly wage rise to $18.92.
Most employees have minimum wage protection under state law. There are exceptions, such as automobile salespersons, outside salespersons, and minors under the age of 18, except for minors working in retail, food service, the first processing of farm products, beauty culture occupations, laundry, cleaning and dyeing occupations, light manufacturing and apparel occupations, and hotel and motel occupations.
Why This Matters for Employers
These increases reflect New Jersey’s commitment to ensuring wages keep pace with inflation and cost of living. Employers should review and adjust payroll systems to ensure compliance ahead of the January 1, 2026 effective date.
It’s also important to remember that the federal minimum wage remains $7.25 per hour, which is significantly lower than New Jersey’s state rate.
Summary of 2026 New Jersey Minimum Wage Rates
| Type of Worker | 2026 Rate (Effective Jan. 1) |
|---|---|
| Most Employees | $15.92/hr |
| Seasonal & Small Businesses | $15.23/hr |
| Agricultural Workers | $14.20/hr |
| Tipped Workers (Cash Wage) | $6.05/hr |
| Long-Term Care Direct Care Staff | $18.92/hr |
Get a Quote from Abacus Payroll
At the end of every year, Abacus Payroll releases a Payroll Tax Alert, which summarizes all of the tax and wage rate information that NJ and PA employers need to be aware of at the start of each new calendar year. To be informed as soon as the Alert is published, sign up to receive email notifications from Abacus Payroll, Inc.
Abacus Payroll’s professionals pride ourselves on bringing you the latest and most accurate updates that you need to successfully run your small business. Contact us for a no-obligation quote and start the new year with a friendly payroll team that keeps looking out for your best interests. Fill out our contact form or give us a call at 856.667.6225.