The minimum salary increase for 2025 is a significant update for many employees. According to recent data, the national average increase is expected to be around 3.5%.
This increase is a welcome boost for workers who have been facing rising costs of living. However, it's worth noting that some industries, such as healthcare and technology, may see larger increases.
The 3.5% average is based on data from 2024, which showed a significant variation in salary increases across different sectors.
Minimum Salary Increase 2025
In New Jersey, the minimum wage is increasing to $15.49 per hour for most employees on January 1, 2025.
The increase is based on the Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics, as required by Article 1, Paragraph 23, of the New Jersey Constitution.
New Jersey's Labor Commissioner, Robert Asaro-Angelo, believes this adjustment will foster a more equitable economy and ensure the workforce can continue to thrive.
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The minimum wage in New Jersey was $8.60 per hour when Governor Murphy took office in 2018, and has been gradually increasing since then.
Public employers in Missouri will be required to pay non-exempt employees a minimum of $13.75 per hour starting August 28, 2025, and $15.00 per hour starting January 1, 2026.
The minimum wage for employees of seasonal and small employers in New Jersey will increase gradually until 2028, with a rate of $14.53 per hour on January 1.
Agricultural workers in New Jersey will see their minimum wage rate increase incrementally until 2030, with a rate of $13.40 per hour on January 1.
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New Jersey Wage Increase
The minimum wage in New Jersey will increase to $15.49 per hour for most employees on January 1, 2025.
This is a $0.36 increase from the previous year, and it's based on the Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.
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The increase is part of a gradual phase-in that started in 2019, when Governor Murphy signed legislation to raise the minimum wage to $15.13 per hour.
The minimum wage for employees of seasonal and small employers will continue to increase gradually until 2028, with a rate of $14.53 per hour on January 1.
Agricultural workers will see their minimum wage rate increase incrementally until 2030, with a rate of $13.40 per hour on January 1.
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Federal Court Ruling
A federal court ruling in 2024 set a precedent for minimum salary increases across the country. This ruling effectively raised the minimum salary threshold to $15 per hour.
Businesses with annual revenues below $500 million are exempt from this new minimum salary requirement.
Wage Information
The minimum wage in Chicago increased to $16.60 per hour for employers with 4 or more employees as of July 1, 2025.
Tipped workers in Chicago have a minimum wage of $12.62 for employers with 4 or more employees, but employers must make up the difference if a tipped worker's wages plus tips don't equal at least the full minimum wage.
The minimum wage paid under City contracts or concessionaire agreements is $17.80 per hour as of July 1, 2025.
Additional reading: 2024 Minimum Salary for Exempt Employees
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