New Jersey minimum wage in 2026 (and 2027)

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

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New Jersey's minimum wage is $15.92 an hour in 2026 for most employers and $15.23 for seasonal employers and those with fewer than six employees, set by state law and updated each January 1 (NJ Department of Labor and Workforce Development). On September 29, 2026 the department announced 2027 rates of $16.48 for most employers and $16.25 for small and seasonal ones, effective January 1, 2027.

Full time, $15.92 pays $33,113.60 over the year. Employer taxes and state insurance add $3,667.94 for a new business.

2026 minimum wage
$15.92 most employers; $15.23 smallan hour
Tipped cash wage
$6.05an hour
2027
$16.48 most employers; $16.25 small and seasonal; $15.00 agricultural; tipped cash $6.61as of October 2026
Federal floor
$7.25an hour
See Gusto pricing on Gusto’s site
On this page
  1. Which New Jersey rate you pay
  2. New Jersey minimum wage by the week, month and year
  3. The employer bill on a $15.92 worker
  4. Paying New Jersey staff

Which New Jersey rate you pay

  • Most employers: $15.92 an hour in 2026, $16.48 in 2027.
  • Seasonal employers and those with fewer than six employees: $15.23 in 2026, $16.25 in 2027. The gap between the two groups narrows from $0.69 to $0.23.
  • Agricultural employers: $15.00 in 2027.
  • Tipped workers: a $6.05 cash wage in 2026 (maximum tip credit $9.87), rising to $6.61 in 2027.

New Jersey's tipped cash wage is nearly three times the federal $2.13, and tips still have to bring total pay to the full minimum. Restaurants with locations in Pennsylvania, where the tipped wage is $2.83, run two very different pay plans. See restaurant payroll tools for payroll options for tipped staff.

New Jersey minimum wage by the week, month and year

Annual pay counts a 2,080-hour year:

  • $15.92: $636.80 a week, $2,759.47 a month, $33,113.60 a year.
  • $15.23: $31,678.40 a year.
  • $16.48 (2027): $34,278.40 a year.

Time and a half kicks in once a workweek passes 40 hours: $23.88 at $15.92.

The employer bill on a $15.92 worker

First-year employer cost of one full-time New Jersey worker at $15.92
ItemAmountHow it is worked out
Gross wages$33,113.60$15.92 x 2,080 hours
FICA (7.65%)$2,533.196.2% Social Security plus 1.45% Medicare
FUTA (0.6% net)$42.000.6% of the first $7,000
UI plus Workforce funds (2.8% new employer)$927.182.8% of all wages (base is $44,800)
Employer TDI (0.5% new employer)$165.570.5% of all wages (base is $44,800)
Employer taxes on top of wages$3,667.9411.08% of wages
All-in cost for the year$36,781.54$17.68 per hour worked

Sources: NJ Department of Labor and Workforce Development employer rate information (2.6825% UI plus 0.1175% Workforce and Supplemental Workforce funds, 0.5% employer TDI, $44,800 wage base), plus the IRS for federal rates. Checked Oct 16, 2026.

New Jersey's $44,800 wage base is above a full-time minimum wage salary, so every dollar is taxed. Workers pay their own share on top: 0.3825% for UI, 0.0425% for workforce funds, 0.19% for disability and 0.23% for family leave insurance. On $33,113.60 that is $279.81 withheld from the worker. More on registration and these programs is in the New Jersey payroll tax guide.

Workers comp is required from the first paid worker, with no minimum payroll and no exemption for a single corporate officer. A corporation needs coverage as soon as anyone, officers included, is on the payroll; an LLC or sole proprietor needs it once a non-owner is paid. The premium is not in the table because it depends on the job class and the insurer.

Paying New Jersey staff

New Jersey payroll has many line items: four worker deductions, two employer state programs, and two minimum wage tiers. Use software that sets the small-employer tier correctly and updates it if you grow past five employees. Gusto Simple runs $49 a month plus $6 for every person paid (checked October 16, 2026). Other providers are scored in our payroll software comparison and price a hire with the employee cost calculator.

See Gusto pricing on Gusto’s site

Across the Hudson, New York pays $17.00 in New York City. Every state is in the minimum wage by state table.

Frequently asked questions

What is the New Jersey minimum wage in 2026?
$15.92 an hour for most employers and $15.23 for seasonal employers and those with fewer than six employees, effective January 1, 2026 (NJ Department of Labor and Workforce Development).
What is the New Jersey minimum wage in 2027?
$16.48 an hour for most employers, $16.25 for small and seasonal employers and $15.00 for agricultural employers, effective January 1, 2027, per the NJ Department of Labor release of September 29, 2026.
What do tipped workers earn per hour in New Jersey?
$6.05 an hour in cash in 2026, with a maximum tip credit of $9.87. It rises to $6.61 on January 1, 2027. Tips must bring total pay to the full minimum wage.
What does a minimum wage employee cost in New Jersey?
A full-time worker at $15.92 earns $33,113.60 a year. A new employer adds $3,667.94 for FICA, FUTA, 2.8% UI and workforce funds and 0.5% employer disability insurance, for $36,781.54 in total.
Sources (5)
  1. NJ Department of Labor and Workforce Development: 2027 minimum wage announcement (checked Oct 16, 2026)
  2. NJ Department of Labor and Workforce Development: Employer rate information (checked Oct 16, 2026)
  3. U.S. Department of Labor, Wage and Hour Division: Minimum wages for tipped employees (checked Oct 16, 2026)
  4. IRS: Instructions for Form 940 (FUTA) (checked Oct 16, 2026)
  5. Gusto: Gusto pricing page (checked Oct 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.