Indonesian Workers with Salaries Below Minimum Wage Increase in Early 2025

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Adi Ahdiat 11/06/2025 14:49 WIB

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According to data from the Central Statistics Agency (BPS), the number of Indonesian employees with salaries below the provincial minimum wage (UMP) increase at the beginning of 2025.

Number and Percentage of Indonesian Employees with Salaries Below the Minimum Wage (February 2020-February 2025)

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Number and Percentage of Indonesian Employees with Salaries Below the Minimum Wage (February 2020-February 2025)

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The number of Indonesian employees with salaries below the provincial minimum wage (UMP) increased at the beginning of 2025 compared to the end of last year.

This trend is evident in the report State of Workers in Indonesia periodically released by the Central Statistics Agency (BPS).

According to the latest report, in February 2025 there were approximately 54.06 million laborers, employees, or workers in Indonesia.

These laborers, employees, or workers share the same definition: someone who worked for a permanent employer in the last month of the survey, receiving wages or salary.

Of that population, in February 2025, 52.78% or approximately 28.53 million employees received wages below the UMP.

Both the proportion and the number increased compared to August 2024, as shown in the graph.

BPS recorded the average net salary received by Indonesian laborers, employees, or workers in February 2025 as Rp3.09 million per month. Meanwhile, the national average UMP for 2025 reached Rp3.31 million per month.

Previously, based on Manpower Law Number 13 of 2003, every business entity was prohibited from paying employees below the minimum wage.

However, this provision has been amended through the Job Creation Perppu Number 2 of 2022 (Chapter IV Employment Article 90B), so the minimum wage provision is exempted for micro and small businesses.

Therefore, business entities categorized as micro and small can now pay employee salaries lower than the UMP.

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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Indonesian Workers with Salaries Below Minimum Wage Increase in Early 2025

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