West Sumatra Province Minimum Wage 2024 Increases To IDR 2.81 Million

The Governor of West Sumatra, Mahyeldi. (ANTARA/HO-Biro Adpim West Sumatra)

The West Sumatra Provincial Minimum Wage (UMP) in 2024 rose to IDR 2.81 million per month from the initial IDR 2.74 million in 2023 based on the Governor's Decree Number: 562-768-2023 dated November 20, 2023. West Sumatra Governor Mahyeldi said the determination of the 2024 UMP had gone through the process according to applicable regulations, one of which was a discussion at the local Wage Council meeting. According to him, the UMP determination meeting was held last Thursday involving the Wage Council of West Sumatra Province with 15 membership members consisting of the Manpower and Transmigration Office, Cooperatives and MSMEs Service, Industry Service, BPS, Higher Education, Apindo and Trade Unions. "The value of the increase in the West Sumatra UMP in 2024 has gone through a joint agreement including representatives of companies and trade unions," he said in Padang, Antara, Monday, November 20. He hopes that the increase in the UMP, although not too large, can have a positive impact on the community's economy. Meanwhile, the Head of the West Sumatra Manpower and Transmigration Office, Nizal Ul Muluk, said that the increase in the West Sumatra UMP in 2024 was around Rp68,973 or 2.52 percent of the 2023 UMP. He said that in general there are three variables that determine the UMP in 2024, namely economic growth, inflation rate, and alpha coefficients (ranked from 0.10 - 0.30). According to him, the amount of alpha is largely determined by the level of wages and the level of employment.

Nizam said the formulation for calculating the 2024 UMP refers to Government Regulation (PP) Number 51 of 2023 concerning Wages as a substitute for PP Number 36 of 2021.