What You Need to Know about the January DSP and Supervisor Wage Increase

New Jersey workers are getting a pay bump. The state’s minimum wage will rise by 43 cents to $15.92 per hour on Jan. 1, continuing a steady climb that began under Gov. Phil Murphy. Seasonal and small employers will be required to raise their minimum pay at the start of 2026, though their rates will remain lower. Their minimum wage will move from $14.53 to $15.23. A 2019 law set the stage for annual hikes. (nj.com)

For IDD agencies:

As in past years, Direct Support Professionals (DSPs) and Supervisors, despite the state’s minimum wage increasing by .43 cents (based on the annual CPI increase of 2.8%), will receive a .46 cent pass through wage increase. Just a reminder the increase must made on base pay/gross wages and cannot be paid as a bonus and are subject to payroll taxes but funding for the increase may not be used for operating expenses or any non-wage expenses.

The required public notice regarding the rate change will be available shortly, likely, next week. As in the past, individual budgets will receive a corresponding increase to support increase rates to applicable services. The pass through and reporting process remains the same as in past years.

Agencies already paying the minimum wage must still pass through the increase to DSP’s and supervisors as the concept behind the multiple wage increases is to keep DSP and supervisor wages ahead of the minimum wage.

Please see documents below released by DHS for the January 1 rate increase for DSP’s and supervisors:

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