New Jersey Minimum Wage Rises to $16.48 on January 1, 2027

The New Jersey Department of Labor and Workforce Development has announced CPI-based 2027 minimum wage rates for standard, seasonal, agricultural, long-term care and tipped workers. Here's the full table and what payroll teams should update.

⚡Key Takeaways for Payroll Professionals
  • New Jersey's standard minimum wage rises to $16.48 per hour on January 1, 2027
    This is an increase of $0.56 over the current rate.
  • Seasonal, small-employer and agricultural rates are set separately
    Seasonal and small employers move to $16.25, and agricultural workers reach $15.00 for the first time.
  • Long-term care direct care staff earn a higher minimum
    The rate rises to $19.48 per hour, an increase of $0.56.
  • The tipped cash wage increases, but the tip credit does not
    The cash wage rises to $6.61, while the maximum tip credit stays at $9.87.
  • Rates are adjusted every year under the state constitution
    The adjustment uses CPI data from the U.S. Bureau of Labor Statistics.

New Jersey's 2027 Minimum Wage Rates

On September 29, 2026, the New Jersey Department of Labor and Workforce Development announced that the state's standard minimum wage will increase by $0.56 to $16.48 per hour on January 1, 2027. Under Article 1, Paragraph 23 of the New Jersey Constitution, the rate is adjusted each year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.

The announcement also sets 2027 rates for seasonal and small employers, agricultural workers, long-term care direct care staff, and tipped workers.

📋 New Jersey Minimum Wage Rates, 2027
NJ Dept. of Labor
Worker Category2026Jan 1, 2027
Standard minimum wage$15.92$16.48 +$0.56
Seasonal and small employers$15.23$16.25 Increase
Agricultural workers$14.20$15.00 $15 milestone
Long-term care direct care staff$18.92$19.48 +$0.56
Tipped workers (cash wage)$6.05$6.61 Increase
💡
Tip Credit Stays at $9.87
For tipped employees the cash wage rises to $6.61 per hour while the maximum tip credit remains $9.87. The cash wage and tip credit together equal the $16.48 standard rate. If a worker’s tips do not bring them up to the full minimum wage, the employer must make up the difference.

Why Agricultural and Long-Term Care Rates Matter

The Department highlighted that New Jersey farm employees will earn $15.00 per hour for the first time, reaching the long-planned $15 benchmark. Long-term care direct care staff, who have their own higher rate, will earn $19.48 per hour, also $0.56 above the 2026 rate. Staffing firms that place workers in agriculture, health care or seasonal roles should confirm which rate category each assignment falls under.

What Payroll Teams Need to Update

1
Before Jan 1, 2027
Load the five 2027 New Jersey rates into payroll and timesheet systems
Apply $16.48, $16.25, $15.00, $19.48 and the $6.61 tipped cash wage to the appropriate worker categories for pay periods starting on or after January 1, 2027.
2
Review
Re-check worker classifications
Confirm which employees qualify for the seasonal/small employer, agricultural or long-term care rate, since the rate differs by category.
3
Review
Verify tipped-employee pay
Make sure the tip credit never exceeds $9.87 and that tips plus cash wage meet the full minimum wage each workweek.
4
Best Practice
Update postings and offer letters
Refresh required wage notices and any pay-rate language in assignment letters for New Jersey positions.
📎 Source & Attribution
"New Jersey Minimum Wage Increase Announcement"
Source: New Jersey Department of Labor and Workforce Development  ·  Published: Sep 29, 2026  ·  View source document ↗
This article represents independent analysis and editorial commentary by the einTime team, prepared for the benefit of payroll professionals. Content draws on publicly available regulatory documents and government publications. All compliance decisions should be verified against applicable regulatory guidance and reviewed with a qualified tax advisor or employment counsel.
ET
einTime Editorial Team
Payroll Compliance Analysts · einTime Resource Center
The einTime editorial team tracks federal, state, and local regulatory developments affecting payroll operations and translates regulatory complexity into practical guidance for payroll professionals.
📅 Key Deadlines
Sep29
NJDOL announces 2027 minimum wage rates
Jan1
All new New Jersey minimum wage rates take effect (2027)
For Payroll Leaders
einTime keeps your payroll tables updated automatically
Stop tracking IRS publications manually. Stay compliant year-round.
  • Automatic federal tax table updates
  • Multi-state withholding engine
  • ADP, Paychex & Dynamics 365 sync
  • Built-in compliance audit trail
See It in Action →
🔗 Source Reference
New Jersey Minimum Wage Increase Announcement
New Jersey Department of Labor and Workforce Development · Sep 29, 2026
View source document ↗
✉ Weekly Digest
Never miss a payroll compliance update
Join 14,000+ payroll pros. Federal, state & local updates every Tuesday.
No spam. Unsubscribe anytime.
←
Previous
California Minimum Wage Rises to $17.40 on January 1, 2027
Next
New York Paid Family Leave 2027: 0.452% Rate, $451.81 Cap
→
Scroll to Top