1,250 Companies Violate Minimum Wage Law, Most in West Java

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Adi Ahdiat 29/11/2023 17:00 WIB

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According to data from the Ministry of Manpower, 1,250 companies violated the provincial minimum wage (UMP) regulations during the January-June 2023 period.

Number of Companies Violating the Minimum Wage by Province (January-June 2023)

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Number of Companies Violating the Minimum Wage by Province (January-June 2023)

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According to data from the Ministry of Manpower, 1,250 companies violated the Provincial Minimum Wage (UMP) regulations between January and June 2023.

These UMP violations were most prevalent in West Java, West Papua, East Java, Banten, and South Sulawesi.

Overall, 24 provinces recorded UMP violation cases between January and June 2023.

Ten provinces, however, reported no such cases, as detailed in the graph.

The UMP is the minimum wage standard applicable to all regencies/cities within a province.

Based on Law Number 6 of 2023 concerning Job Creation, the minimum wage applies to workers with less than one year of service (Chapter IV Employment Article 88E).

For workers with one year or more of service, wages are determined based on the company's established wage structure and scale (Chapter IV Employment Article 92).

The law also stipulates that companies are prohibited from paying wages below the minimum wage (Chapter IV Employment Article 88E).

Violating companies face penalties of 1-4 years imprisonment and/or a fine of Rp100 million to Rp400 million (Chapter IV Employment Article 88E).

However, the law provides an exception for "micro-businesses" and "small businesses" (Chapter IV Employment Article 90B).

Therefore, micro and small businesses are no longer obligated to comply with the minimum wage regulations.

According to Government Regulation Number 7 of 2021, micro-businesses are defined as those with a maximum capital of Rp1 billion (excluding land and buildings), or annual sales of a maximum of Rp2 billion.

Small businesses, on the other hand, are defined as those with capital exceeding Rp1 billion up to Rp5 billion (excluding land and buildings), or annual sales exceeding Rp2 billion up to Rp15 billion.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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1,250 Companies Violate Minimum Wage Law, Most in West Java

1,250 Companies Violate Minimum Wage Law, Most in West Java

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1,250 Companies Violate Minimum Wage Law, Most in West Java

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