The 2024 Provincial Minimum Wage (UMP) has been announced by several provincial governments in Indonesia, including those on the island of Sumatra.
The determination of the 2024 UMP is based on Government Regulation (PP) Number 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages.
According to this PP, each governor must announce the 2024 UMP no later than Tuesday, November 21, 2023.
Citing the DPR RI website on Monday, November 13, 2023, the Minister of Manpower (Menaker), Ida Fauziyah, stated that the certainty of the minimum wage increase was obtained through the application of the Minimum Wage Formula, which includes three variables: inflation, economic growth, and a specific index (symbolized as ?/alpha).
This specific index is determined by the Regional Wage Council, considering the level of labor absorption and average/median wages. Other relevant factors related to labor conditions are also considered.
Bangka Belitung has the highest 2024 UMP in Sumatra at Rp3,640,000. Meanwhile, the lowest 2024 UMP in Sumatra is Bengkulu at Rp2,507,079.
The 2024 UMP for all provinces on the island of Sumatra will be effective from January 1, 2024.
The following is a complete list of the 2024 UMP in 10 provinces on the island of Sumatra.
1. Bangka Belitung
The Bangka Belitung Provincial Government set the 2024 UMP at Rp3,640,000. This is a 4.04% increase, or Rp141,521, from the 2023 Bangka Belitung UMP of Rp3,498,479.
2. Aceh
The Aceh Provincial Government set the 2024 UMP at Rp3,460,672. This is a 1.38% increase, or Rp47,006, from the 2023 Aceh UMP of Rp3,413,666.
3. South Sumatra
The South Sumatra Provincial Government set the 2024 UMP at Rp3,456,874, a 1.55% increase, or Rp52,629, from the province's 2023 UMP of Rp3,404,177.
4. Riau Islands
The Riau Islands Provincial Government set the 2024 UMP at Rp3,402,492. This is a 3.76% increase, or Rp123,298, from the 2023 UMP of Rp3,279,194.
5. Riau
The Riau Provincial Government set the 2024 UMP at Rp3,294,625, a 3.23% increase, or Rp102,963, from the 2023 UMP of Rp3,191,662.
6. Jambi
The Jambi Provincial Government set the 2024 UMP at Rp3,037,121. This is a 3.2% increase, or Rp94,000, from the 2023 Jambi UMP of Rp2,943,000.
7. West Sumatra
The West Sumatra Provincial Government set the 2024 UMP at Rp2,811,449, a 2.52% increase, or Rp68,973, from the 2023 West Sumatra UMP of Rp2,742,476.
8. North Sumatra
The North Sumatra Provincial Government set the 2024 UMP at Rp2,809,915. This is a 3.67% increase, or Rp99,422, from the 2023 North Sumatra UMP of Rp2,710,493.
9. Lampung
The Lampung Provincial Government set the 2024 UMP at Rp2,716,497. This is a 3.16% increase, or Rp83,213, from the 2023 Lampung UMP of Rp2,633,284.
10. Bengkulu
The Bengkulu Provincial Government set the 2024 UMP at Rp2,507,079. This is a 3.86% increase, or Rp88,799.24, from the 2023 Bengkulu UMP of Rp2,418,280.