New Jersey's minimum wage is going up by a quarter to $8.85 an hour on Jan. 1, the Murphy administration announced Friday.

The Department of Labor and Workforce Development says it calculates whether the rate needs to be adjusted each fall by reviewing consumer price index data.

The adjustments are mandated by the state constitution, which requires changing the rate to keep up with inflation.

Last year the rate climbed by 16 cents to the current level of $8.60.

The department says New Jersey is one of eight states to adjust the rate automatically based living costs.

The change comes as Gov. Phil Murphy pushes to raise the minimum wage to $15 an hour. The effort has not advanced yet in the Democrat-led Legislature.