2018 Minimum Wage Increase of 8.71 Percent

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02/11/2017 13:11 WIB

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2016-2018 Minimum Wage Increases

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The Indonesian government has set an 8.71 percent increase in the 2018 Provincial Minimum Wage (UMP). This figure is derived from a fixed inflation rate of 3.72 percent plus an economic growth rate of 4.99 percent. Therefore, the 2018 UMP = 2017 UMP + (8.71 X 2017 UMP).

The government's announcement of the UMP increase refers to Government Regulation Number 78 of 2015 concerning the Wage Scheme for Workers. According to the Minister of Manpower, M. Hanif Dakhiri, the wage determination has considered the interests of both workers and employers.

The magnitude of the wage increase must be predictable; otherwise, a sudden surge could shake the business world. If employers cannot produce goods/services due to their inability to pay the increased wages, it will lead to employee reductions or layoffs (PHK). Ultimately, it is the workers who will suffer the consequences.

"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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2018 Minimum Wage Increase of 8.71 Percent

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2018 Minimum Wage Increase of 8.71 Percent

Tags

Related Data

Increase in Provincial Minimum Wage in 6 Provinces on Java Island, 2016-2025

Efficiency: The Primary Reason for Layoffs in Indonesia in 2025

Majority of Indonesian Migrant Workers Depart at a Young Age

Age of Established Entrepreneurs in Indonesia by Early 2025

Number of Workers at PT IMIP's Nickel Industrial Zone Continues to Rise from 2020-2025

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