JAKARTA - Minister of Manpower (Menaker) Yassierli said the government encourages the minimum wage to be closer to the decent living needs (KHL).
Yassierli in his statement in Jakarta, Thursday, assessed that the minimum wage (UM) policy has a direct impact on the purchasing power of workers and their families ranging from basic needs, transportation, to housing costs.
"We consider the KHL to be very important as a benchmark. If the minimum wage is close to the KHL, the increase is certainly not the same as the area where the minimum wage is still far from the KHL," said the Minister of Home Affairs as quoted by ANTARA, Thursday, January 22.
Furthermore, Yassierli explained, through Government Regulation Number 49 of 2025, the policy of wage increases is no longer uniform between regions, but the amount of increase is adjusted to the economic conditions of each region and the position of wages relative to the KHL.
"So areas with a large distance between wages and KHL can encourage higher wage increases compared to areas where wages have approached KHL," he said.
In addition, the Minister of Home Affairs also explained the results of the determination of the 2026 Provincial Minimum Wage (UMP) and its comparison with the KHL estimate. From the comparison, there is still a gap between regions, some provinces have approached the KHL, while others are still below the KHL standard.
To make wage recommendations more in line with field conditions, Yassierli said the government continues to strengthen the capacity of the Regional Wage Council and the Regional Tripartite Cooperation Agency (LKS) so that wage discussions in the region are based on studies and real conditions.
Regarding the preparation of the KHL, he also said that the process was carried out through a study involving a team of experts and using official data, including the National Socioeconomic Survey (Susenas). Currently, the KHL working paper is only available at the provincial level.
Meanwhile, the calculation of KHL to the district/city level, according to Yassierli, has not been able to be carried out due to limitations on the availability of data. Even so, the government will continue to encourage the development of KHL calculations so that the remuneration policy is more equitable.
"The government will also continue to develop the calculation of KHL to the district/city level as part of efforts to create a more equitable, stable, and sustainable wage system," he said.
Meanwhile, the minimum wage is the lowest wage set by the government that applies to workers with less than one year of work at the company concerned.
Meanwhile, for workers or laborers with a work period of more than 1 year, the applicable remuneration is using the wage structure and scale.
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