48% of Employees Received Wages Below the Minimum Wage in August 2024

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Nabilah Muhamad 10/12/2024 16:01 WIB

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According to BPS data, in August 2024 there were approximately 56.13 million employees/workers in Indonesia. Approximately 48% of them received salaries below the UMP.

Proportion of Employees with Salaries Above/Below the Minimum Wage (August 2024)

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48% of Employees Received Wages Below the Minimum Wage in August 2024

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Proportion of Employees with Salaries Above/Below the Minimum Wage (August 2024)

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According to a report by the Central Statistics Agency (BPS), there were 56.13 million people employed as laborers/employees/staff in Indonesia in August 2024.

Laborers/employees/staff are individuals who work for another person or institution/office/company on a permanent basis and receive wages. Laborers without a permanent employer are not included in this group but are classified as independent workers.

Of the population of laborers/employees/staff in August 2024, 48.44%, or approximately 27.19 million people, received salaries below the provincial minimum wage (UMP).

Those receiving salaries above the UMP comprised 51.56%, or approximately 28.94 million people.

BPS recorded that in August 2024, the average net salary received by laborers/employees/staff in Indonesia reached Rp3.27 million per month.

According to Government Regulation Number 51 of 2023, the national average UMP for 2024 is Rp3.11 million per month.

Previously, according to the Manpower Law Number 13 of 2003, every business entity was prohibited from paying employees below the minimum wage.

However, this provision was amended through the Job Creation Perppu Number 2 of 2022 (Chapter IV Employment Article 90B), so the minimum wage provision is exempted for micro and small businesses.

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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48% of Employees Received Wages Below the Minimum Wage in August 2024

48% of Employees Received Wages Below the Minimum Wage in August 2024

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48% of Employees Received Wages Below the Minimum Wage in August 2024

48% of Employees Received Wages Below the Minimum Wage in August 2024

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