Jakarta's Minimum Wage Standard is Among the Lowest in Southeast Asian Capital Cities

WageIndicator data processed by Gajimu shows that Jakarta, the Indonesian capital, has a relatively low living wage compared to other Southeast Asian capitals in 2023.

This living wage calculation uses the Jakarta Provincial Minimum Wage (UMP) of Rp4.9 million in 2023. This places Jakarta among the bottom three out of nine surveyed capitals.

The lowest living wages, below Jakarta's, were Hanoi, Vietnam (Rp4.56 million) and Vientiane, Laos (Rp2.28 million) per month.

Jakarta's living wage is significantly lower than Singapore's, which ranked first at Rp30.46 million per month in 2023. Bandar Seri Begawan, Brunei Darussalam, ranked second at Rp10.22 million, followed by Kuala Lumpur, Malaysia, at Rp6.41 million per month.

Below the top three were Phnom Penh, Cambodia (Rp5.76 million); Bangkok, Thailand (Rp5.68 million); and Manila, Philippines (Rp4.95 million).

Note that all living wages have been converted to Indonesian Rupiah.

(Read also: [List of Countries with the Worst Gender Pay Gaps in 2022](https://databoks.katadata.co.id/datapublish/2024/04/11/daftar-negara-dengan-kesenjangan-gaji-gender-terparah-pada-2022))

WageIndicator typically determines a living wage higher than a country's minimum wage. Only 26 countries had a national minimum wage higher than WageIndicator's living wage calculation as of April 2024.

"If the living wage calculated by WageIndicator is lower than the minimum wage in a specific region, WageIndicator will only focus on the minimum wage value, as in the case of Jakarta," said the WageIndicator research team, as quoted by Gajimu on Monday (May 20, 2024).

WageIndicator defines a living wage as the income needed to meet a family's basic needs in their area of residence. This family is assumed to consist of two adults and a number of children determined by the country's specific fertility rate (two children in Indonesia).

One adult is assumed to work full-time (40 hours/week), while the second adult works part-time (3-4 days per week). The combined wages of the two adults, each receiving a living wage, are designed to meet the family's decent living standard. This calculation does not include overtime, bonuses, or other allowances.

Twelve components are used in the calculation, including food, water, housing, energy, transportation, children's education, healthcare, clothing, telephone, unexpected expenses, taxes, and social security.

Here's a breakdown of the living wages in several Southeast Asian capitals compiled by WageIndicator:

1. Singapore (Singapore): Rp30,467,000
2. Bandar Seri Begawan (Brunei Darussalam): Rp10,229,000
3. Kuala Lumpur (Malaysia): Rp6,410,000
4. Phnom Penh (Cambodia): Rp5,769,000
5. Bangkok (Thailand): Rp5,682,000
6. Manila (Philippines): Rp4,951,000
7. Jakarta (Indonesia): Rp4,901,000
8. Hanoi (Vietnam): Rp4,568,000
9. Vientiane (Laos): Rp2,285,000

(Read also: [Top 10 Provinces with the Highest Average National Labor Wages in Early 2024: Jakarta Tops the List](https://databoks.katadata.co.id/datapublish/2024/05/20/10-provinsi-dengan-rerata-upah-buruh-tertinggi-nasional-awal-2024-dki-jakarta-teratas))