JAKARTA - The Confederation of Indonesian Trade Unions (KSPI) has responded to the determination of the minimum wage in 2023 issued in the Minister of Manpower Regulation (Permenaker) Number 18 of 2022.
KSPI President Said Iqbal views that the formula on calculating wage increases through Permenaker 18/2022 by determining the increase in the minimum wage next year is a maximum of 10 percent confusing.
"The limit on a maximum of 10 percent creates confusion and a wrong understanding of the minimum wage. The minimum wage is a minimum, there is no maximum word," Said Iqbal said in a virtual press conference, Sunday, November 20.
Said Iqbal views that the calculation of the minimum wage determination is actually the amount of the value of inflation plus economic growth.
"The minimum wage is a safety net. Why should it be maximal? Therefore, there should be no definition of a maximum of 10 percent," said Said Iqbal.
However, Said Iqbal still appreciated the issuance of Permenaker 18/2022. This is because the determination of the minimum wage no longer uses PP No. 36 of 2021 which has been considered less beneficial for the working group.
Said Iqbal then asked regional heads to determine the amount of the provincial minimum wage (UMP) and the district/city minimum wage (UMK) in accordance with Permenaker 18/2022.
This value is obtained from the current year's inflation of 6.5 percent and economic growth until the end of the year which is estimated to be 4 to 5 percent.
“ Labor union organization calls for UMK at the district/city and UMP levels at the provincial level to increase by at least 10 percent. The 10 percent increase makes sense and it is allowed by Permenaker,” he said.
Although, Said Iqbal hopes that the governors and regents/mayors can set the minimum wage based on the calculation of the wage council up to 13 percent as expected by the current labor union.
“ The most decisive one is the governor because he will sign the minimum wage decree. We hope to be granted once is 13 percent by following the inflation and economic growth,” he added.
For information, the Ministry of Manpower (Kemnaker) issued Minister of Manpower Regulation Number 18 of 2022 concerning Determination of Minimum Wage in 2023, one of which regulates that the minimum wage adjustment should not exceed 10 percent.
Some of the provisions in it emphasize the adjustment of the minimum wage value for 2023 calculated using the counting formula taking into account the economic growth variables, inflation and certain indexes. The data used also comes from the competent institution in the field of statistics.
Meanwhile, Article 7 states that the determination of the minimum wage value adjustment should not exceed 10 percent. In addition, in terms of the calculation of the minimum wage value adjustment exceeding 10 percent, the Governor set the minimum wage with a maximum adjustment of 10 percent.
In the Minister of Manpower Regulation Number 18 of 2023 it is also written that the UMP 2023 is determined by the governor and will be announced no later than November 28, 2022. The governor can also determine the UMK 2023 and be announced no later than December 7, 2022.
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