We would appreciate your comments
Insight In News
Indonesian Highlights and Insights in News
Indonesian Highlights and Insights in News
Social_Interest
Minister Of Manpower Signed Regulation On 2025 Minimum Wage
Thursday, 05 Dec 2024
The Minister of Manpower, Yassierli, officially issued Regulation of the Minister of Manpower Number 16 of 2024 concerning the Establishment of the Minimum Wage for 2025 on Wednesday, December 4, 2024. According to this regulation, the Provincial Minimum Wage (UMP) and the Regency/City Minimum Wage (UMK) for 2025 will increase by 6.5% and will take effect on January 1, 2025. "This UMP must be implemented for workers with a tenure of one year or less," stated Yassierli during a press conference at the Ministry of Manpower office in Jakarta on Wednesday, December 4, 2024.
In Regulation Number 16 of 2024, the UMP for 2025 is set to rise by 6.5%. The calculation formula involves adding the current year's UMP to the increase for 2025, which is 6.5%. This increase has taken into account economic growth, inflation, and specific indices.
For the UMK, the calculation basis is defined as UMK 2025 = UMK 2024 + Increase in UMK 2025. Similar to the UMP, the increase in the Regency/City Minimum Wage for 2025 is also set at 6.5%.
In addition to the UMP and UMK, Regulation 16 of 2024 also addresses Sectoral Wages (UMS). UMS is applicable to specific sectors that have distinct characteristics and work risks compared to others, as well as those requiring heavier job demands or specialized skills.
The specific sectors are recommended by the Provincial Wage Council to the Governor for the determination of the UMP, and by the Regency/City Wage Council to the Governor through the Regent/Mayor for the establishment of the sectoral minimum wage at the regency/city level.
The regulations stipulate that the Provincial Minimum Wage (UMS) must exceed the Provincial Minimum Salary (UMP). Additionally, the Minimum Wage for districts and cities (UMS Kabupaten/Kota) must also surpass the Minimum Wage for those respective areas. Furthermore, the UMS is determined based on agreements made by the provincial wage council for the sectoral minimum wage at the provincial level, as well as agreements by the district and city wage councils for the sectoral minimum wage at the local level.
Moreover, the UMP and UMS for the province in 2025 are required to be established through a Governor's Decree and announced no later than December 11, 2024. In contrast, the Minimum Wage for districts and cities (UMK) and the UMS for those areas in 2025 must also be set by a Governor's Decree and disclosed by December 18, 2024, at the latest.
Finally, the UMP, UMS for the province, UMK, and UMS for districts and cities for 2025 will take effect on January 1, 2025.
"We hope that all parties will implement the UMP policy, which has taken into account the purchasing power of workers and the competitiveness of businesses," he emphasized. (ridwan@insightinnews.com)
