Minister of Manpower Hanif Dhakiri has decided to increase the 2017 Provincial Minimum Wage (UMP) by 8.25 percent. The 2017 UMP increase is based on an assumed inflation rate of 3.07 percent and economic growth of 5.18 percent in 2017. This increase is lower than the previous year's 11.65 percent increase, due to high inflation in 2016.
The UMP is formulated based on a specific formula and is determined for the following year in accordance with Government Regulation Number 78 of 2015 concerning Wages. The increase is calculated based on national inflation and economic growth. The inflation used as a benchmark is the year-on-year (YoY) value from September of the previous year to September of the current year. Economic growth takes into account the Gross Domestic Product (GDP) of the third and fourth quarters of the previous year and the first and second quarters of the current year.
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