JAKARTA - The Ministry of Manpower (Kemnaker) is working on a regulation on the provincial minimum wage (UMP) determination scheme for 2026. The reshuffle is a follow-up to the Constitutional Court Decision (MK) Number 168 of 2023.
The Minister of Manpower (Menaker) Yassierli ensured that the amount of wage increases would be different in each region. He explained that in fact there is a large minimum wage disparity between regions, both across cities/districts and across provinces. Inequality is caused by various conditions and regional economic growth.
"Currently there is disparity related to the minimum wage across cities/districts and across provinces. And each region has economic growth, various economic conditions, so we are drafting the concept that the wage increase is not one number," he told the media crew quoted on Saturday, November 22.
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Furthermore, Yassierli also mentioned that the new concept of determining the UMP also gives authority to the regions. Based on the mandate of the Constitutional Court, the Provincial, City/Regency Wage Council will be tasked with reviewing the proposed increase in wages in their respective regions, then it will be submitted to the Governor to be determined.
"We also want to give authority to provinces, cities, regencies to determine it in accordance with the guidelines from the center which we are currently working on in the form of a PP," explained Yassierli.
He also ensured that the coordination process for compiling the PP would certainly adjust to the mandate of the Constitutional Court and the expectations of the working community.
"So earlier, there were processes, because this is in the form of PP. What I say is coordination, and we certainly make sure it is in accordance with what is expected by the community, fellow workers, by the mandate from the Constitutional Court and so on," said Yassierli.
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