The Banten Provincial Government has set the 2024 Regency/City Minimum Wage (UMK) for its region.
This is stipulated in Banten Governor's Decree Number 561/Kep.293-Huk/2023, announced on November 30, 2023.
The 2024 UMK in Banten ranges from Rp4.8 million to Rp2.9 million.
The highest figure is in Cilegon City, while the lowest is in Lebak Regency.
The following is a complete list of the 2024 UMK in Banten, ordered from highest to lowest:
1. Cilegon City: Rp4,815,102.80
2. Tangerang City: Rp4,760,289.54
3. South Tangerang City: Rp4,670,791.00
4. Tangerang Regency: Rp4,601,988.00
5. Serang Regency: Rp4,560,894.85
6. Serang City: Rp4,148,602.00
7. Pandeglang Regency: Rp3,010,929.87
8. Lebak Regency: Rp2,978,764.69
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 stipulates 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.