Company Sanctions Don't Pay Wages According To UMP: Watch Out! The Punishment Is Not Playing!

YOGYAKARTA - In 2023, it is confirmed that the Provincial Minimum Wage will be adjusted. The basis for the adjustment of the UMP in 2023 refers to the Regulation of the Indonesian republic's Employment Minister No. 18 of 2022 which contains the 2023 Minimum Wage. Then what are the company's sanctions for not paying wages according to the UMP?

Before we discussed the sanctions, until now, based on the records from the Ministry of Manpower (Kemnaker), 33 Governors have set salaries according to the 2023 UMP based on Permenaker No. 18 of 2022. Of course, this was welcomed by employees and workers.

On the other hand, this rule also reaps strong protests from entrepreneurs. Some even sued Permenaker No. 18/2022 regarding the minimum wage that had been sent to the Supreme Court (MA).

The emergence of pros and cons on the recently issued policy is certainly a normal thing. But what if the regulation is in effect and entrepreneurs still don't want to pay the UMP?

What kind of sanctions will be given to overcrowding entrepreneurs? So, is there relief for entrepreneurs who are unable to pay employee wages according to UMP standards? Here's the review.

Getting To Know The UMP

The reason is, the Provincial Minimum Wage (abbreviated as the UMP) is the minimum wage that applies to all districts or cities in one province. According to the Minister of Manpower Number. 18 of 2022, the minimum wage is the lowest monthly wage inaugurated by the Governor as the safety net. There is also a minimum wage consisting of wages without allowances or basic wages and fixed allowances.

The Minimum Wage applies to workers and employees with a working period of less than one year in a job. Meanwhile, wages for workers and employees with a working period of one year or more are based on the structure and scale of wages.

The Formula for calculating the Minimum Wage by taking into account the variables for economic growth, inflation, and certain indexes. There is also a calculation formula in determining the 2023 UMP, namely the following:

UM(t+1)= UM(t)+(Adjustment of UM value x UM(t))

Explanation:

UM(t+1)= Minimum Wage to be inaugurated.

UM(t)= Minimum Wage for the current year.

UM Value Adjustment: Minimum Wage Value Adjustment in the form of summation between inflation and multiplication of economic growth and calming. There is also an UM Value Adjustment obtained by sourced in the following formula:

UM = Inflation+ (PE x Laughs) Value Adjustment

Article 23 paragraph (2) of Government Regulation No. 36 of 2021 concerning Wages emphasizes that employers are prohibited from paying wages lower than the minimum wage. If employers stay silent and continue to pay with wages under the provisions, of course, employers will be subject to sanctions.

The sanctions waiting for entrepreneurs who do not follow the provisions of the minimum wage include imprisonment and fines, Wow! These sanctions are regulated in article 81 number 63 of Law No. 11 of 2020 concerning Job Creation.

The article says that entrepreneurs who pay wages lower than the minimum wage will be subject to a minimum imprisonment of 1 (one) year and a maximum of 4 (four) years and or a fine of at least Rp. 100,000,000.00 (one hundred million rupiah) and a maximum of Rp. 400,000,000.00 (four hundred million rupiah), Nah Loh!

In other words, employers must obey the regulations to pay wages to workers and employees according to the minimum wage requirements. However, that does not mean that employers cannot get relief, considering that the company's capabilities are different, there must be exceptions.

Exceptions For Micro Entrepreneurs

As discussed earlier, the requirements for the 2023 UMP do not bind to each entrepreneur. That is, there are types of businesses that are allowed to pay wages under the requirements of the 2023 UMP. However, this exception only applies to Micro Enterprises and Small Businesses.

However, there are still wage guidelines that must be obeyed by micro entrepreneurs and small entrepreneurs. The wage rule must be based on an agreement between employers and workers and laborers in the industry with the following conditions:

There is also the average value of public consumption and what is called the poverty line must refer to information from the competent authorities in the field of statistics.

Although micro and small businesses can be free from the obligation to pay according to the 2023 requirements, only micro and small businesses with certain criteria can do it, you know!

As for micro-enterprises and small businesses that can be excluded from the requirements for the 2023 UMP, they should be obliged to take into account 2 aspects, namely, businesses that rely on traditional energy sources; and or do not move on high-tech businesses and do not have large capital.

Thus it can be understood that every entrepreneur must pay wages for workers and employees in accordance with the requirements of the 2023 UMP. If the employer does not pay the wages of the workers and employees according to the requirements of the 2023 UMP, then, there will be imprisonment and fines.

However, there are also exceptions for micro entrepreneurs and small businesses, so they can pay workers and employees under the provisions of the 2023 UMP. But there are still requirements or wage guidelines that must be accompanied.

So after knowing the company's sanctions do not pay wages according to the UMP, see other interesting news on VOI.ID, it's time to revolutionize news!