Aceh's 2024 UMP Increased by Rp47,000

The Aceh Acting Governor, Achmad Marzuki, has set the 2024 Provincial Minimum Wage (UMP) at Rp3,460,672.

This figure represents an increase of Rp47,006, or 1.38%, compared to the 2023 UMP.

Head of the Aceh Manpower and Population Mobility Agency, Akmil Husen, explained that the UMP increase was calculated based on the formula in Government Regulation (PP) Number 51 of 2023 concerning Wages.

He detailed that the 2024 Aceh UMP applies to workers with less than one year of service. Employers are also obligated to establish a wage structure and scale as a guideline for paying wages to workers with more than one year of service.

"Companies that have already provided higher wages before the issuance of the 2024 Aceh UMP decision are prohibited from reducing or lowering the wages given," said Akmil in his official statement on Monday (20/11/2023).

"Employers are also prohibited from paying workers wages lower than the 2024 Aceh UMP decision," he continued.

(Read also: Indonesian UMP Increases by Rp2.5 Million in 20 Years)

Based on the Manpower Law Number 13 of 2003, every employer is prohibited from paying employees less than the minimum wage.

However, this provision was amended through the Job Creation Perppu Number 2 of 2022 (Chapter IV Employment Article 90B) which reads: "The minimum wage provisions as referred to in Article 88C paragraph (1) and paragraph (2) are exempted for micro and small businesses".

Therefore, business entities categorized as "micro" and "small" are no longer obligated to follow the minimum wage regulations.

Based on PP Number 7 of 2021, the criteria for "micro businesses" are those with a maximum capital of Rp1 billion (excluding land and buildings used for the business), or annual sales of a maximum of Rp2 billion.

Then, the criteria for "small businesses" are those with capital >Rp1 billion to Rp5 billion (excluding land and buildings used for the business), or annual sales >Rp2 billion to Rp15 billion.