Khofifah Announces East Java UMP 2024 Increases By IDR 125 Thousand

SURABAYA - The Provincial Government (Pemprov) of East Java has decided the 2024 East Java Provincial Minimum Wage (UMP) of IDR 2,165,244.30. This means that there is an increase of IDR 125,020 or an increase of 6.13 percent from the 2023 UMP of IDR 2,040,224.30.

The increase in the 2024 UMP is based on the Decree of the Governor of East Java Number 188/606/KPTS/013/2023 concerning the Minimum Wage of East Java Province in 2024, seen from the JDIH page of the East Java Provincial Government Legal Bureau. The gubernatorial decree was determined by the Governor of East Java Khofifah Indar Parawansa in Surabaya on Monday, November 20, 2023.

"The increase in the East Java UMP in 2024 is in line with the direction of the Central Government through the Minister of Manpower which has issued Government Regulation no. 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages," said Khofifah, Tuesday, November 21.

"Where in the regulation, it is set to use the minimum Wage calculation formula by taking into account the variable growth of the economy, inflation and certain indexes," he added.

Regarding the calculation of the Minimum Wage in 2024, Khofifah explained, all of them use the formula in accordance with the provisions of Government Regulation Number 51 of 2023. By using statistical data released by the Central Statistics Agency, as the basis for calculating Minimum Wage adjustments, both the Provincial Minimum Wage (UMP) and the Regency/City Minimum Wage (UMK) in 2024.

The data used in the calculation of the East Java Provincial Minimum Wage (UMP) in 2024 include the average monthly expenditure per capita according to the province of IDR 1,323,486. The government also sees an average number of household members according to the province of 3.53 to the average number of household members working according to the province of 1.66.

In addition, there is also data on economic growth (PDRB Quarter IV 2022 + Triwulan I, II, III 2023) against (PDRB Quarter IV 2021 + Triwulan I, II, III 2022) according to the province at 4.96 percent. Furthermore, the combined inflation data from September 2022 to September 2023 according to the province is 3.01 percent.

Governor Khofifah emphasized that the decision to increase the 2024 East Java UMP by 6.13 percent had taken into account a sense of justice, and considered the economic and labor conditions that were developing in East Java. "For this UMP increase, it is hoped that all stakeholders will pay attention and apply these provisions carefully," he hoped.

At the end, Governor Khofifah also asked companies and entrepreneurs not to terminate their employment (PHK) due to the increase in the UMP in 2024. For companies that feel difficult and unable, they can submit a proposal for a suspension.

"Hopefully this growing economic recovery will have a good impact on the business world, the industrial world whose estuary will provide prosperity for workers," he said.