UMP Calculation Formula 2025: Minimum Wage Increase And Estimated In All Provinces

YOGYAKARTA - The Indonesian government will set the 2025 Provincial Minimum Wage (UMP) through a governor's decision which must be announced no later than Wednesday, December 11, 2024. As the minimum wage standard that applies at the provincial level, the UMP has an important role in determining the welfare of workers in each region.

The good news is that the 2025 UMP will increase by 6.5 percent. This increase is regulated in the Minister of Manpower Regulation (Permenaker) Number 16 of 2024 concerning the Determination of Minimum Wage 2025, which was ratified on Wednesday, December 4, 2024. More fully read in: Minister of Manpower Yassierli Issues Ministerial Regulation Regulation of UMP 2025, Increase in Capai 6.5 Percent

"Provincial minimum wages, provincial sectoral minimum wages, district/city minimum wages, and district/city sectoral minimum wages in 2025 that have been set will take effect on January 1, 2025," explained Minister of Manpower Yassierli on Thursday, December 5, 2024.

In addition to the UMP, the determination of the Regency/City Minimum Wage (UMK) and the Regency/City Minimum Wage (UMSK) for 2025 will also be announced no later than Wednesday, December 18, 2024.

The increase in the 2025 UMP by 6.5 percent resulted in an average national minimum wage of IDR 3,315,728, an increase of around IDR 200,000 from the previous year. For example, the Jakarta UMP for 2025 was set at IDR 5,396,761, making it the province with the highest UMP in Indonesia. On the other hand, Central Java has the lowest UMP with a value of IDR 2,169,349.

The calculation of the 2025 UMP refers to Article 2 Paragraph (2) of the Minister of Manpower Number 16 of 2024, with the following formula:

-UMP 2025 = UMP 2024 + (UMP 2024 x 6.5%)

Article 2 Paragraph (3) also states that the increase in the 2025 UMP takes into account several factors, namely:

The calculation process is carried out by the provincial wage council, which then recommends the results to the governor to be ratified. Meanwhile, the calculation of the 2025 UMK uses the same formula, as stated in Article 5 of the Minister of Manpower Number 16 of 2024:

UMK 2025 = UMK 2024 + (UMK 2024 x 6.5%)

UMK is generally higher than the UMP because it looks at the needs of decent living at the district/city level. The governor has the authority to determine the UMK with a larger value than the UMP.

The 2025 UMP Increase Throughout Indonesia

As of Tuesday, December 10, 2024, several provinces have announced the amount of the 2025 UMP in accordance with the 6.5 percent increase regulated in the Minister of Manpower Regulation Number 16 of 2024. For example, the Central Kalimantan UMP rose to IDR 3,473,621 from IDR 3,261,616, with an increase of IDR 212,005.

The following is a list of estimates for the 2025 UMP in 38 provinces in Indonesia:

The increase in the UMP by 6.5 percent provides an additional average of Rp130,000 to Rp330,000 in each province. The increase is influenced by the value of the previous year's UMP, so that each region has a different nominal increase.

So the conclusion is, with the increase in the 2025 UMP by 6.5 percent, it is hoped that the standard of living for workers in Indonesia can increase more. This determination pays attention to economic growth, inflation, and labor contributions to the regional economy. The formula for calculating the 2025 UMP which is simple but based on economic data ensures transparency and justice in its implementation.

For those of you who want to understand more deeply, understanding the formula for calculating the 2025 UMP is an important step to project minimum income in the coming year. This information is also useful for workers, employers, and local governments in formulating policies that are sustainable and oriented towards community welfare.

So after knowing the formula for calculating the 2025 UMP, see other interesting news on VOI.ID, it's time to revolutionize news!