New Rules Are Issued, Minister Of Manpower Ida Fauziyah Ensures Minimum Wage 2024 Rises

Minister of Manpower Ida Fauziyah. (Photo: Mery Handayani/VOI)

JAKARTA - The Minister of Manpower Ida Fauziyah ensured that the 2024 minimum wage would certainly increase.

This increase is in line with the issuance of new rules regarding wages.

The regulation in question is Government Regulation Number 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages.

"This minimum wage increase is a form of appreciation to fellow workers/laborers who have contributed to our economic development so far," said Ida Fauziyah, through the Public Relations Bureau of the Ministry of Manpower, Saturday, November 11.

Furthermore, Ida said, the PP issued on November 10, 2023 is the basis for determining the 2024 Minimum Wage and so on.

"Furthermore, we ask the Governors, the Head of the Office in charge of manpower, and the Regional Wage Council to carry out their duties as mandated by this government regulation, and the determination of the Provincial Minimum Wage is set no later than November 21 and for the Regency/City Minimum Wage on November 30," he said.

Ida explained that the certainty of the minimum wage increase was obtained through the implementation of the Minimum Wage Formula in Government Regulation Number 51 of 2023 which includes three variables, namely Inflation, Economic Growth, and Certain Index (symbolized in the form of sickles).

The Certain Index as referred to is determined by the Regional Wage Council by considering the level of employment and the average/feeding method. In addition, other considerations are factors that are relevant to employment conditions.

"With these three variables, economic and labor conditions in an area have been accommodated in a balanced manner, so that the Minimum Wage to be determined can be a solution to the certainty of work and business continuity," he said.

With these provisions, said Ida, there will be a strengthening of the Role of the Regional Wage Council in the form of additional roles to provide suggestions and considerations to the Regional Head, in the context of implementing the minimum wage and the structure and scale of wages in the company in their respective regions.

"The increase in the minimum wage can encourage an increase in people's purchasing power, which ultimately has an impact on the absorption of goods and services produced by entrepreneurs, so that companies can also develop and encourage the opening of new jobs," he said.

In addition, according to Ida, with the provision of wages as regulated in PP Number 51 of 2023, it will create business certainty for the business world and industry. So that the existence of this PP is also expected to realize a just wage system in the company, one of which is by implementing the structure and scale of wages.

"The implementation of the structure and scale of wages will motivate increased productivity and performance of workers/laborers because workers/laborers will be paid their wages based on work output or productivity," he said.

In addition to ensuring an increase in the minimum wage, said Ida, this step also encourages people's purchasing power, as well as provides legal certainty for the business world and industry.

Ida said, the newly issued Wage PP also aims to prevent disparities or wage gaps between regions.

"So in terms of preventing the gap or disparity of the minimum wage between regions, PP Number 51 of 2023 is better than the wage regulations that have existed so far," he said.