Jakarta, CNBC Indonesia – The Ministry of Manpower (Kemenaker) stated that as of 16.53 WIB today, Tuesday (21/11/2023), 26 out of 38 provinces had sent a copy of the Governor’s Decree regarding the determination of the 2024 provincial minimum wage (UMP).
The Director General of Industrial Relations Development and Employment Social Security (Dirjen PHI Jamsos) of the Ministry of Manpower, Indah Anggoro Putri, said that her party is still giving the provincial government time to report the Decree on Determining the 2024 UMP on November 21 2023 until 23.59 WIB.
“The deadline for determining the provincial minimum wage is every November 21. November 21 isn’t over yet, well, November 21 ends at 23.59, that’s West Indonesia Time (WIB). So we’ll wait until midnight, hopefully before midnight, OK?” ” said Indah in a chat with the Director General of PHI and Social Security, Ministry of Manpower, Tuesday (21/11/2023).
If a provincial government reports a copy of the decree beyond the stipulated time limit, said Indah, the Ministry of Manpower will act decisively by reporting it to the Ministry of Home Affairs, where it will then be followed up.
Indah said that as of 16.53 WIB, in nominal terms the lowest minimum wage increase was IDR 35,750, while the highest increase was IDR 223,280.
“The lowest percentage (increase in the 2024 UMP) is 1.2%, the highest is 7.5%,” he said.
This figure is a temporary figure, considering that there are still 12 provinces that have not reported a copy of the Governor’s Decree to the Ministry of Manpower.
Apart from that, Indah said that there were 2 provinces out of 26 provinces that had reported that they had set a minimum wage increase that was not in accordance with Government Regulation (PP) 51/2023 concerning Amendments to PP 36/2021 concerning Wages. However, Indah was reluctant to reveal which province she meant.
“I can’t name the province yet. Tonight the Minister of Manpower (Ida Fauziyah) will issue a press release on wage determination,” he said.
For your information, the government has issued Government Regulation (PP) No. 51/2023 concerning Amendments to PP No. 36/2021 concerning Wages. This regulation also includes a new calculation formula for the Minimum Wage.
In article 26 of PP No. 51/2023, the Minimum Wage calculation formula includes 3 variables, namely Inflation, Economic Growth and Certain Indexes (symbolized in the form α). Certain indices are in the value range of 0.10 to 0.30.
The formula for calculating the minimum wage is as follows:
UMP = inflation + (economic growth X certain index/α)
23 Provinces Announce UMP
At the same time, currently only 23 provincial governments have announced the size and increase of the UMP for 2024.
Based on CNBC Indonesia’s monitoring, to date, the 2024 UMP which has experienced the highest increase occurred in North Maluku province, which is set to increase by 7.50% or IDR 221,646.57 to IDR 3,200,000 from the 2023 UMP which was IDR 2,976,720.
Followed by DI Yogyakarta which was decided to increase by 7.27% or IDR 144,115.22 to IDR 2,125,897.61 in 2024.
Even so, the highest wage in 2024 is the DKI Jakarta UMP set to increase by 3.6% or IDR 165,583 in 2024, set to increase to IDR 5,067,381.
[Gambas:Video CNBC]
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