The Minimum Wage in Indonesia’s Provinces Will Increase in 2024

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The Minimum Wage in Indonesia's
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Liputan6 English Version – The Minister of Manpower, Ida Fauziyah, has announced the certainty of an increase in the Provincial Minimum Wage (UMP) for the year 2024. This decision is based on the issuance of new regulations related to wages, namely Government Regulation (PP) No.51/2023, which amends PP No.36/2021 regarding wages.

With the implementation of these new regulations, the UMP for 2024 will be effective from January 1. Provincial Minimum Wage Indonesia

According to Minister Ida, the certainty of the UMP increase is based on the application of a minimum wage formula that includes three main variables. These variables involve inflation, economic growth, and a specific index symbolized as alpha (α), as stipulated in PP No.51/2023.

“With these three variables, the economic and labor conditions of a region can be accommodated in a balanced manner. This is aimed at ensuring that the established Minimum Wage can be one of the solutions to provide certainty in work and support business sustainability,” said Ida in her official statement, as quoted on Monday (13/11/2023).

The minimum wage formula, incorporating variables such as inflation, economic growth, and the alpha (α) index, is a progressive step to ensure that the UMP reflects the current economic conditions of a region.

With this approach, it is hoped that the UMP can provide appropriate support to workers and employers, creating a fair balance in labor relations.

The UMP increase is not only a form of appreciation for workers but also plays a crucial role in promoting regional economic growth. By providing wage certainty, the government is creating a stable business environment, stimulating productivity, and increasing the purchasing power of the population.

Therefore, this policy is expected to have a positive impact overall on the welfare and economic development in various provinces in Indonesia.(MIS)

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