The Bali Provincial Government has set the 2024 Provincial Minimum Wage (UMP) at Rp2,813,672.
This figure is an increase of Rp100,000, or a 3.68% rise from this year's UMP.
Head of Bali's Manpower and Energy and Mineral Resources Office (Disnaker), Ida Bagus Setiawan, stated that this determination is based on joint calculations by the Wage Council using the Ministry of Manpower's new formula, as stipulated in Government Regulation (PP) Number 51 of 2023.
The decision on the 2024 Bali UMP has also been agreed upon by the Wage Council, comprising representatives from employer associations, labor unions, academics, experts, and government institutions.
"We have agreed to set the UMP, and the minutes of the meeting have been reported to the Acting Governor of Bali, resulting in the issuance of Governor's Decree Number 979/03-M/HK/2023 concerning the 2024 Bali UMP," said Ida Bagus Setiawan, as reported by *Antara* on Monday (20/11/2023).
Compared to previous increases, the wage increase in Bali this time is lower. From 2022 to 2023, the Bali UMP increased by Rp196,701, or 7.81%.
According to the Head of Bali's Disnaker, this difference in the rate of increase is influenced by the new calculation formula.
Previously, the UMP increase was calculated using a formula based on PP Number 36 of 2021. This year, the calculation uses the formula in PP Number 51 of 2023.
The new PP stipulates that the "Adjustment Value" of the minimum wage is calculated using the formula: {inflation + (economic growth x alpha)} x current year's minimum wage.
The alpha in the formula is a variable within the range of 0.1 to 0.3, determined by considering the level of labor absorption, average/median wages, or other factors relevant to labor conditions.