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Increase in Minimum wage

Increase in Minimum wage
Beginning New Year's day, minimum wage workers in New Jersey will witness an increase in pay. This is the latest step towards achieving Jersey's 2019 legislation goal of reaching $15 an hour for most employees by 2024. Starting Saturday, the minimum wage will be $13 an hour. 

Since 2018, the minimum wage has gone up by $8.60 an hour. Small businesses with less than six employees and seasonal businesses have until 2026 to reach $15 an hour. Currently, those workers will see a pay rise from $11.10 to $11.90 an hour. Workers who earn through tips such as restaurant employees and bartenders will receive a pay rise of $1 per hour bringing their current minimum wage to $5.13. According to recent developments, if the tips do not bring the wage to $13 an hour then the employers must make up the difference. Farmworkers will receive $11.05 instead of $10.44. Their minimum wage is estimated to reach $15 an hour by 2027. Direct care staff in long-term facilities will receive an increase of $1 bringing their total minimum wage to $16 per hour. 

Researchers believe that the wage raise will enable workers to afford basic needs such as food and heat. Families can cope with the increased financial pressure due to the pandemic. If workers are paid more the money is usually spent immediately, by gradually increasing the minimum wage its positive effects can be seen by businesses and the overall economy.

Source: N.J.com (True Jersey)

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