Ministry Of Manpower: Highest Increase In UMP 2024 Capai IDR 223,280

Wage illustration (photo: dock. Antara)

The Ministry of Manpower (Kemnaker) announced that the highest increase in the determination of the 2024 Provincial Minimum Wage (UMP) reached 7.5 percent or IDR 223,280 and the lowest increase was 1.25 percent or IDR 35,750.

The Director General of Industrial Relations and Employment Social Security at the Ministry of Manpower, Indah Anggoro Putri, said that until 17.08 WIB as many as 28 provinces from 38 provinces had sent a copy of the Governor's Decree regarding the determination of the 2024 Provincial Minimum Wage (UMP), on Tuesday, November 21, 2023.

Indah said that in nominal terms, the highest increase in the determination of the 2024 UMP reached 7.5 percent or Rp223,280 and the lowest increase was 1.25 percent or Rp35,750.

"The percentage (increase to the 2024 UMP) is 1.2 percent lowest, the highest is 7.5 percent," said Indah in a chat with the Director General of PHI and Jamsos of the Indonesian Ministry of Manpower, at a media briefing on the report on the determination of the 2024 UMP, Tuesday, November 21.

Indah said that this figure is still temporary, because there are still several provinces that have not reported a copy of the Governor's Decree to the Ministry of Manpower. In addition, he has not been able to detail exactly which provinces experienced the highest increase and the lowest increase.

According to Indah, several provinces that have reported, as many as 2 provinces do not set the minimum wage according to Government Regulation (PP) No. 51/2023 concerning Amendments to Government Regulation No. 36/2021 concerning Wages.

Indah said that later the province that violated the rules would receive guidance to sanctions from the Ministry of Home Affairs (Kemendagri).

"Because this is not a Regulation of the Minister of Manpower (Kemnaker) but PP, the sanctions are not in us but the Ministry of Home Affairs, what is clear is that there are sanctions," explained Indah.

Previously, the Minister of Manpower (Menaker) Ida Fauziah again reminded the Governors in all provinces to immediately determine and announce the increase in the provincial minimum wage (UMP) in 2024 no later than Tuesday, November 21.

Ida emphasized that each province in determining the amount of the UMP must refer to the formula for Government Regulation (PP) No. 51/2023 concerning Amendments to Government Regulation No. 36/2021 concerning Wages as a reference in determining the 2024 UMP.

Meanwhile, there are three variables, namely inflation, economic growth, and certain indexes that are symbolized in the form of alpha that needs to be understood and implemented by the Regional Head or Acting Regional Head, in determining the Provincial and Regency/City Level Minimum Wage policies.

"The certainty of the minimum wage increase is obtained through the application of the minimum wage formula in PP No. 51/2023 concerning Amendments to PP No. 36/2021 concerning Wages which includes three variables, namely inflation, economic growth, and certain indexes which are symbolized in the form of alpha," said Minister of Manpower Ida Fauziyah in an official statement, Tuesday, November 21.

Ida emphasized that the UMP or UMK policy can only apply to workers with a working period of under 1 year.

In addition, the wage policy for workers/laborers with a working period of more than 1 year or more is mandatory for a productivity/performance-based wage policy, using the Wage-Scale Structure or SUSU instrument.

Thus, workers/laborers with a working period of more than 1 year are blessed to be paid above the minimum wage, which is adjusted to the company's performance output and capabilities.