DIY Provincial Government Sets UMP 2026 Up 6.78 Percent to Rp2.41 Million

YOGYAKARTA - The Yogyakarta Special Region (DIY) Provincial Government (Pemprov) has set the 2026 Provincial Minimum Wage (UMP) at Rp2,417,495 or an increase of 6.78 percent compared to the previous year of Rp153,414.05.

The Regional Secretary (Sekda) of DIY Ni Made Dwi Panti Indrayanti at a press conference in Kepatihan, Yogyakarta, said the determination was guided by Government Regulation (PP) Number 49 of 2025 concerning the Second Amendment to PP Number 36 of 2021 concerning Wages.

"The provincial minimum wage for 2026 is determined by the governor based on the recommendation of the DIY Wage Council, which consists of trade union elements, business elements, government elements, and academic elements," said Ni Made as reported by ANTARA, Wednesday, December 24.

He said the DIY Provincial Wage Council had initiated the determination of the Provincial Sectoral Minimum Wage (UMSP) for the construction sector as well as the transportation sector, limited to passenger and goods transportation, taking into account the characteristics, risks, and economic developments through the study of academics.

However, the results of the analysis, he continued, showed structural challenges in both sectors. Fluctuations in performance and economic dynamics make the implementation of UMSP considered not appropriate to be implemented in 2026.

"Considering the dynamics and challenges in the construction sector as well as transportation and warehousing, the implementation of UMSP is considered not appropriate for 2026, so it still uses the previous applicable provisions," said Ni Made.

In addition, he continued, the DIY Governor also determined the DIY Regency/City Minimum Wage (UMK) 2026 based on the recommendations of the regent and mayor based on the proposal of the Regency/City Wage Council.

In detail, the Yogyakarta City UMK increased by 6.50 percent or Rp172,551 to Rp2,827,593, Sleman Regency increased by 6.4 percent or Rp157,872 to Rp2,624,387, and Bantul Regency increased by 6.29 percent or Rp148,468 to Rp2,591,000.

Furthermore, Kulon Progo Regency increased by 6.52 percent or Rp153,280 to Rp2,504,520, Gunungkidul Regency increased by 5.93 percent or Rp138,115 to Rp2,468,378.

Ni Made emphasized that the UMK applies to workers or laborers with less than one year of work at the company concerned. Employers, he said, are prohibited from paying wages below the UMK and are not allowed to suspend payment of the minimum wage in 2026.

"Employers are required to formulate and implement the structure and scale of wages in the company. Wages for workers with one year or more of work are based on the wage structure and scale as an effort to improve workers' welfare, while taking into account the company's ability and productivity," he said.

Ni Made added that the magnitude of the wage increase in 2026 was above the previous provisions which ranged from 0.1 to 0.3 percent. Meanwhile, the value of alpha was set by the central government, with a range of 0.5 to 0.9 handed over to the regions through the discussion of the Wage Council.

"This is the importance between employers and workers. So, we just take the middle way," he said.