East Java UMP 2024 Increased by Rp125,000

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Adi Ahdiat 22/11/2023 09:43 WIB

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East Java Provincial Government sets the 2024 UMP (Provincial Minimum Wage) at Rp2,165,244.30. This figure represents a 6.13% increase, or an additional Rp125,000, compared to the 2023 UMP.

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East Java UMP 2024 Increased by Rp125,000

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Comparison of East Java's UMP 2023-2024

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The East Java Provincial Government has set the 2024 Provincial Minimum Wage (UMP) at Rp2,165,244.30.

This figure represents a 6.13% increase, or Rp125,000, compared to the 2023 UMP.

East Java Governor Khofifah Indar Parawansa stated that the UMP increase adheres to the calculation formula stipulated in Government Regulation (PP) No. 51 of 2023 concerning Wages.

"In this regulation, (the UMP increase) is determined by considering variables of economic growth, inflation, and certain indices," said Khofifah in her press release on Tuesday (November 21, 2023).

Khofifah claims that the East Java UMP increase considers fairness, economic conditions, labor conditions, and incorporates aspirations from both workers and employers.

She also hopes that this UMP increase will prevent companies from conducting layoffs (PHK).

"For companies experiencing difficulties and unable to comply, they can submit a deferral proposal. Hopefully, continued economic recovery will positively impact businesses and industries, ultimately improving worker welfare," said Khofifah.

PP Number 51 of 2023 states that the minimum wage applies to workers with less than one year of service.

For workers with more than one year of service, wages are based on the company's established wage structure and scale.

Initially, based on the Manpower Law Number 13 of 2003, every employer was prohibited from paying employees less than the minimum wage.

However, this provision was amended through the Job Creation Perppu Number 2 of 2022 (Chapter IV Employment Article 90B) which reads: "The minimum wage provisions as referred to in Article 88C paragraph (1) and paragraph (2) are exempted for micro and small businesses."

Therefore, business entities categorized as "micro" and "small" are no longer obligated to follow the minimum wage regulations.

Based on PP Number 7 of 2021, the criteria for "micro businesses" are those with 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 those with capital >Rp1 billion up to Rp5 billion (excluding land and buildings used for the business), or annual sales >Rp2 billion up to Rp15 billion.

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."