From 2005 to 2016, the national average minimum wage consistently increased. During this period, the average minimum wage for workers rose by 13 percent, approaching Rp 2 million per month. Government Regulation Number 78 of 2015 concerning wages established a standard annual minimum wage increase. Inflation and economic growth are the primary variables in calculating this increase.
Furthermore, through the fourth economic policy package, the government provided greater certainty to workers/laborers that wages would increase annually by establishing a specific calculation formula. The following year's minimum wage is calculated based on the current year's wage plus the current payment, calculated using inflation and economic growth.
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