New Jersey's minimum wage goes up to $10 an hour from $8.85

TRENTON, New Jersey (WABC) -- New Jersey's minimum wage has gone up 13% to $10 an hour as part of the state's five-year plan to raise the hourly minimum wage to $15.

Democratic Gov. Phil Murphy signed the legislation ratcheting up the state's $8.85 minimum wage earlier this year, and on Monday the rate climbed to $10.

"Today marks a monumental step on our path to a stronger and fairer New Jersey," he said. "Our economy grows when everyone can participate in it - every hardworking New Jerseyan deserves a fair wage that allow them to put food on the table and gas in their car. Together, we are making New Jersey more affordable and giving over a million New Jerseyans a pathway to the middle class."

After this increase, the statewide minimum wage will continue to increase by $1 per hour every January 1 until it reaches $15 per hour on January 1, 2024.

For seasonal workers and employees at small businesses with five or fewer workers, there is no change in the rate -- which will remain at $8.85 until it climbs to $10.30 on January 1.

WATCH: NJ officials hail the $10/hour minimum wage, look ahead to $15

The base minimum wage for them will reach $15 per hour by January 1, 2026.

By January 1, 2028, workers in these groups will receive the minimum wage inclusive of inflation adjustments that take place from 2024 to 2028, equalizing the minimum wage with the main cohort of New Jersey workers.

For agricultural workers, the base minimum wage will increase to $12.50 per hour by January 1, 2024, and no later than March 31, 2024, the New Jersey Labor Commissioner and Secretary of Agriculture will jointly decide whether to recommend that the minimum wage for agricultural workers increase to $15 per hour by January 1, 2027, as specified in the bill.

If they cannot come to an agreement, a third member, appointed by the governor with the advice and consent of the Senate, will break the tie. If there is a recommendation to disapprove of the scheduled increases or suggest an alternative pathway, the Legislature will have the ability to implement that recommendation by passage of a concurrent resolution.

The minimum wage for tipped workers climbed 50 cents to $2.63 on Monday.

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