The minimum wage in Newark, NJ, is $13.00 per hour in 2022.
Newark, New Jersey, is undoubtedly one of the most popular cities on the east coast, not just within the Garden State itself.
Many people choose Newark as their place to live and work due to the many great job opportunities, large consumer market, access to beaches and the ocean, unique and diverse restaurants, a growing arts scene, proximity to New York City, and brilliant attractions.
The following graphic showcases the Newark minimum wage rate over the past several years, which has been increasing at a consistent and gradual rate.
The weekly minimum wage in Newark equates to $520 ($13.00 x 40) if you work a full 40-hour week. There are, however, some exceptions to this hourly wage for student workers, tipped employees, and overtime workers, who may receive different minimum wage rates.
Newark Minimum Wage Exemptions
There are rules and laws in place to ensure that employers are paying their employees the minimum wage or above in Newark, NJ, unless they are exempt employees.
Below are the minimum wage rates for exempt employees in Newark:
- Newark’s minimum wage for tipped employees is $5.13 per hour with a tip credit rate of $7.87.
- Student-workers (full-time high school or college) in Newark are paid a minimum wage of $11.05 per hour for up to 20 hours of work a week. If they work over 20 hours per week, they are eligible for the full minimum wage of $13.00 per hour.
- The overtime minimum wage in Newark is $19.50 per hour for every hour worked in excess of 40 hours per week ($13.00 x 1.5).
- The minimum wage for employees under the age of 20 is $4.25 per hour for the first 90 days of employment, and after this, they are eligible for the Newark minimum wage rate of $13.00 per hour.
What is the Newark Living Wage?
Due to Newark being such a large city with a busy and ever-growing population and a competitive job market, you would anticipate the minimum wage rate to be slightly higher than $13.00 per hour.
However, there is a ‘living wage’ for Newark, which is calculated based on how much a person needs to earn so they can pay their bills, food, and general cost of living expenses while living in the city.
The living wage for an adult living alone with no children in Newark is $20.57 per hour (via Living Wage Calculator), which is $7.57 higher than the minimum wage for the state itself.
Several employers consider this when they contemplate how much they should be paying employees within the city.
Taking all of the living expenses into account, the living wage annual salary (for a full-time person) in Newark is $42,786 before state income tax in New Jersey.
Newark Living Wage for 1 Adult
Below is a table representing the living wage in Newark for a single adult, with different living wages for the additional amount of children they live with and care for.
|Single Adult||0 Children||1 Child||2 Children||3 Children|
Newark Living Wage for 2 Adults
The table below showcases the living wage in Newark for two adults with only one working, including the costs for the different numbers of dependent children.
|2 Adults (1 working)||0 Children||1 Child||2 Children||3 Children|
What is the Average Wage in Newark?
Now that we know the minimum wage, exemptions, and the cost of living, or living wage, in Newark, let’s take a look at what the average wage is for employees in Newark.
According to payscale.com, the average base hourly rate is approximately $19.91 per hour in Newark. If you worked full-time (40 hours per week or 2080 hours per year), your average annual gross income would be approximately $41,413.
So, as an employee or future employee in Newark, you have a good chance of being paid a higher wage than the minimum wage of $13.00 per hour. However, unfortunately, you may still not make enough to reach the living wage rate within the city.
If the living wage in Newark is $20.57 and the average salary equates to an effective hourly rate of $19.57 per hour, Newark is a city that needs to be considered carefully if you are looking to move.
Fortunately, the average wage in Newark is just an average calculation, and you could certainly earn more than this when moving to the state. However, you may be paid even less, with the minimum wage being $13.00 per hour, which is the case for many Servers in New Jersey.
Newark is a popular city to move to with it being so close to the Big Apple and with property prices being less than NYC, but some financial considerations are certainly recommended before making any rushed decisions.
Newark Minimum Wage History
The table below displays the historical minimum wage rates in Newark all the way back to 1983. As you can see in the table, we have included percentage increases as well as the dollar increase per year.
|New Jersey City||Wage||Year||$ Wage Increase||% Increase|
The minimum wage in Newark is the same rate as the NJ state minimum wage, following an hourly wage of $13.00 per hour. As an employee in Newark, you must be paid this wage or higher by law.
The living wage is significantly higher than the minimum wage within the city, which is why many Newark employers will pay more than $13.00 per hour to their employees despite not being legally obliged to.