NJ Prevailing Wage Calculator
Calculate total labor costs for New Jersey public works projects under the NJ Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.). Enter the trade classification, hours worked, and applicable wage rates to determine gross wages, fringe benefits, and total project labor cost.
Formulas Used
Regular Base Wages = Regular Hours × Base Hourly Rate
Overtime Base Wages = Overtime Hours × Base Hourly Rate × 1.5
Gross Base Wages = Regular Base Wages + Overtime Base Wages
Fringe Benefits = (Regular Hours + Overtime Hours) × Fringe Rate (straight time on all hours)
Employer Payroll Taxes = Gross Base Wages × Payroll Tax Rate
Total Labor Cost per Worker per Week = Gross Base Wages + Fringe Benefits + Payroll Taxes
Project Total = Total Labor Cost per Worker per Week × Number of Workers × Number of Weeks
Prevailing Wage Rate = Base Rate + Fringe Rate (the "total package" rate published by NJ DOL)
Effective All-In Hourly Rate = Project Total ÷ Total Project Hours
Assumptions & References
- NJ Prevailing Wage Act — N.J.S.A. 34:11-56.25 et seq. requires payment of prevailing wages on all public works contracts exceeding $16,263 (2024 threshold, adjusted annually by NJ DOL).
- Overtime threshold — 40 hours per workweek. Hours beyond 40 are paid at 1.5× the base wage rate per N.J.A.C. 12:60 and the federal Fair Labor Standards Act (FLSA).
- Fringe benefits — Paid at the straight-time rate on all hours worked (regular and overtime), consistent with 29 CFR § 5.29 and NJ DOL guidance. Fringe contributions to bona fide plans are not subject to payroll taxes.
- Payroll taxes — Default 7.65% represents FICA (Social Security 6.2% + Medicare 1.45%). Add FUTA (0.6% on first $7,000) and NJ SUTA (varies; 2024 new employer rate ~2.8%) as applicable.
- Prevailing wage rates — Preset rates are illustrative 2024 reference figures. Official rates by county and trade are published by the NJ Department of Labor & Workforce Development and must be verified for each project.
- Certified payroll — Contractors on NJ public works projects must submit certified payroll records (NJ Form MW-562) to the contracting agency weekly.
- Apprentices — Registered apprentices may be paid at lower rates per their apprenticeship agreement; journey-worker rates apply to all others.
- This calculator does not account for shift differentials, holiday pay, tool allowances, or project-specific addenda. Always consult the project's wage determination and your labor attorney.