West Java UMP Increased by Rp1.7 Million in 20 Years

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Adi Ahdiat 23/11/2023 18:40 WIB

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West Java's UMP (Regional Minimum Wage) has grown by 461% or approximately Rp1.7 million during the 2004-2024 period.

West Java University of Muhammadiyah (2004-2024)

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West Java University of Muhammadiyah (2004-2024)

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According to data from the Central Statistics Agency (BPS), in 2004, the West Java Provincial Minimum Wage (UMP) was Rp366,500.

The figure then continued to rise in subsequent years, until the West Java UMP reached Rp2.05 million in 2024.

Cumulatively, the West Java UMP has grown by 461% or increased by approximately Rp1.7 million during the 2004-2024 period.

Detailed by year, the highest increase in the West Java UMP over the last two decades was recorded in 2016 under the leadership of Governor Ahmad Heryawan.

At that time, the West Java UMP increased by 31.24% from Rp1 million (2015) to Rp1.3 million (2016).

Meanwhile, in 2015 and 2021, the West Java UMP stagnated or did not increase at all from the previous year.

Government Regulation (PP) Number 51 of 2023 states that the minimum wage applies to workers/laborers with less than 1 year of service.

For workers/laborers with more than 1 year of service, their wages are based on the wage structure and scale created by the company.

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

However, this provision was changed 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".

Thus, business entities categorized as "micro" and "small" are no longer required 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.

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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