Starting January 1, 2027, New Jersey's minimum wage is $16.48 per hour for most employees, an increase of $0.56. Seasonal and small employers (less than six employees) must pay at least $16.25. Farm workers paid hourly or by piece rate reach $15 per hour. Long-term care direct care staff get $19.48. The minimum cash wage for tipped workers is $6.61.
In This Guide
What changes on January 1, 2027
The New Jersey Department of Labor and Workforce Development (NJDOL) announced the 2027 rates on September 29, 2026. The statewide rate for most employees rises by $0.56 to $16.48 an hour. You can read the NJDOL press release for the full text.
The increase comes from the New Jersey Constitution. Article 1, Paragraph 23 requires the rate to be adjusted each year based on any increase in the Consumer Price Index. NJDOL sets the new figure and it takes effect January 1.
| Employee group | 2026 | 2027 |
|---|---|---|
| Most employees | $15.92 | $16.48 |
| Seasonal and small employers (less than six employees) | $15.23 | $16.25 |
| Agricultural workers (hourly or piece rate) | $14.20 | $15 |
| Tipped workers, minimum cash wage | $6.05 | $6.61 |
| Maximum tip credit | $9.87 | $9.87 |
Rates for other groups
New Jersey does not have one minimum wage. It has several, and the right one depends on the employer and the job.
Seasonal and small employers with less than six employees pay at least $16.25 an hour in 2027, up from $15.23. This group is still on a schedule of annual statutory increases. NJDOL says those increases finish in 2028. After that, the rate rises each year with the CPI like the others.
Agricultural workers paid by the hour or by piece rate reach $15 an hour on January 1, up from $14.20. NJDOL notes this is the first year farm workers reach the $15 benchmark. Their phase-in finishes in 2030.
Direct care staff at long-term care facilities get a $0.56 raise, to $19.48 an hour.
Tipped workers
The minimum cash wage for tipped workers rises to $6.61 an hour from $6.05. The maximum tip credit an employer may claim stays at $9.87. If the cash wage plus tips do not reach the state minimum wage, the employer must pay the difference.
Check the tipped pay code in your payroll system. It is usually separate from the regular hourly rate, and it is easy to update one and miss the other.
Pay periods that cross January 1
The new rate applies to hours worked on or after January 1, 2027. It does not depend on the pay date. If a pay period starts in December and ends in January, split the hours. Pay the December hours at the 2026 rate and the January hours at $16.48.
Paying the whole period at the new rate is also allowed, and it is simpler. Paying the January hours at the old rate is not.
What to do before January 1
- Sort each employee into the right group. Count your employees to see whether the small employer rate applies, and confirm which jobs are seasonal, agricultural or long-term care direct care.
- Update pay rates in payroll. Apply the new rates to hours worked on or after January 1, 2027. A pay period that spans the date may need two rates.
- Replace your workplace minimum wage poster with the 2027 version from NJDOL once it is published.
- Check salaried exempt staff. The NJDOL release does not address salary thresholds. Confirm each exempt employee still meets the federal salary and duties tests.
- Budget for the raise. Multiply each affected employee's raise by expected 2027 hours, then add employer payroll taxes.
For the rates in effect through December 31, 2026, see our New Jersey minimum wage 2026 guide. For withholding and filing rules, see the New Jersey payroll compliance guide.
Frequently Asked Questions
What is the New Jersey minimum wage in 2027?
Starting January 1, 2027, New Jersey's minimum wage is $16.48 per hour for most employees. That is an increase of $0.56.
What is the 2027 minimum wage for small and seasonal employers in New Jersey?
Employees of seasonal and small employers (less than six employees) must be paid at least $16.25 per hour starting January 1, 2027, up from $15.23.
What is the tipped minimum cash wage in New Jersey in 2027?
The minimum cash wage for tipped workers rises to $6.61 per hour from $6.05. The maximum tip credit stays at $9.87. If cash wage plus tips do not reach the state minimum wage, the employer pays the difference.
What is the 2027 minimum wage for farm workers in New Jersey?
Agricultural workers paid an hourly or piece-rate wage reach $15 per hour on January 1, 2027, up from $14.20.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of October 2026 and may not reflect recent changes in federal or New Jersey state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with New Jersey law before making payroll or compliance decisions for your business.