The Bali Provincial Government has set the 2024 Kabupaten/Kota Minimum Wage (UMK) for its region.
This is stipulated in Bali Governor's Decree No. 999/03-M/HK/2023 dated November 28, 2023.
The 2024 UMK in Bali ranges from Rp3.3 million to Rp2.8 million.
The highest is in Badung Regency. The lowest is in Karangasem, Bangli, Klungkung, Buleleng, and Jembrana Regencies, with the amount following the Provincial Minimum Wage (UMP).
The following is a complete list of the 2024 UMK in Bali, ordered from highest to lowest:
1. Badung Regency: Rp3,318,628.06
2. Denpasar City: Rp3,096,823
3. Gianyar Regency: Rp2,928,713
4. Tabanan Regency: Rp2,913,164.74
5. Karangasem Regency: Rp2,813,672
6. Bangli Regency: Rp2,813,672
7. Klungkung Regency: Rp2,813,672
8. Buleleng Regency: Rp2,813,672
9. Jembrana Regency: Rp2,813,672
Based on Law Number 6 of 2023 concerning Job Creation, the minimum wage applies to workers/laborers with less than one year of service (Chapter IV Employment Article 88E).
For workers/laborers with one year or more of service, wages are based on the company's established wage structure and scale (Chapter IV Employment Article 92).
The Law also states that companies are prohibited from paying wages lower than the minimum wage (Chapter IV Employment Article 88E).
Companies that violate this can face criminal penalties of 1-4 years imprisonment and/or a fine of Rp100 million to Rp400 million (Chapter IV Employment Article 88E).
However, the Law provides an exception for "micro-businesses" and "small businesses" (Chapter IV Employment Article 90B).
Therefore, micro and small-scale businesses are no longer required to comply with the minimum wage regulations.
Based on Government Regulation Number 7 of 2021, the criteria for micro-businesses are having a maximum capital of Rp1 billion (excluding land and buildings used for the business), or annual sales of a maximum of Rp2 billion.
The criteria for small businesses are having capital of >Rp1 billion to Rp5 billion (excluding land and buildings used for the business), or annual sales of >Rp2 billion to Rp15 billion.