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Half of Indonesian Employees Paid Below the Minimum Wage in August 2025

Adi Ahdiat 29/12/2025 13:05 WIB

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According to BPS data, almost half of employees in Indonesia received salaries lower than the provincial minimum wage (UMP) in August 2025.

Proportion of Employees in Indonesia Based on Wage Level Relative to the Provincial Minimum Wage (August 2025)

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Proportion of Employees in Indonesia Based on Wage Level Relative to the Provincial Minimum Wage (August 2025)

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According to a report by the Central Statistics Agency (BPS), there were approximately 56.78 million employees in Indonesia in August 2025.

These employees are individuals who work for others and receive wages or salaries.

Workers who do not have a permanent employer are not included in this group but are classified as freelance workers.

Furthermore, an individual is considered to have a permanent employer if they worked for the same employer in the last month during the survey.

Of all employees in Indonesia, 49.7% of them, or 28.22 million people, received salaries below the provincial minimum wage (UMP) in August 2025.

The remaining 50.3%, or 28.56 million people, had salaries above the UMP.

Generally, the average net salary received by employees in Indonesia in August 2025 reached Rp3.33 million per month.

Meanwhile, the national average UMP for 2025 was Rp3.32 million per month.

Previously, based on Manpower Law No. 13 of 2003, every business entity was prohibited from paying employees below the minimum wage.

However, this provision was amended through Government Regulation in Lieu of Law (Perpu) No. 2 of 2022 on Job Creation (Chapter IV Manpower, Article 90B), which exempts micro and small enterprises from the minimum wage requirement.

In other words, micro and small-scale business entities can now pay employees 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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Half of Indonesian Employees Paid Below the Minimum Wage in August 2025

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Half of Indonesian Employees Paid Below the Minimum Wage in August 2025

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Related Data

Average Net Salary of Employees in 38 Provinces of Indonesia in August 2025

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