Valuing IDR 2.99 Million, Kendari's UMK Officials Applicable Starting January 1, 2023

Head of the Kendari City Manpower and Industry Service Muhammad Ali Aksa. (Photo: Doc. Antara)

KENDARI - Kendari City Minimum Wage (UMK) in 2023 was officially appointed by the Governor of Southeast Sulawesi Ali Mazi for IDR 2,993,730 and took effect on January 1, 2023.

Head of the Kendari City Manpower and Industry Office Muhammad Ali Aksa said his party had received the determination of the UMK based on the decision of the Governor of Southeast Sulawesi Number 673 of 2022.

Meanwhile, the Head of Industrial Relations Development (PHI) and Employment Social Security of the Kendari Manpower and Transmigration Office, Susianti Hafid, said that with the determination of the UMK, companies are prohibited from paying wages lower than the minimum wage stipulation.

"The Kendari UMK in 2023 applies to workers/laborers with a working period of less than one year for the company concerned in the Kendari City area," said Susianti, reported by Antara from Kendari, Sunday, December 18.

Susianti explained that the provisions of the Kendari UMK in 2023 are excluded from micro and small businesses, where wages are determined based on an agreement between employers and workers/laborers in companies with a provision of at least 50 percent of the average public consumption. The agreed wage value is at least 25 percent above the poverty line in Kendari City.

"Entrepreneurs are obliged to develop a wage structure and scale by taking into account the company's capabilities and productivity as a guideline for workers/laborers with a work period of one year or more in accordance with the provisions of the legislation," he said.

Furthermore, Susianti, in the Decree, apart from discussing the UMK for Workers with a working period of one year. There is also a worker/labor wage set daily.

"For the calculation of the daily wage for companies with a work time system of six days a week, the monthly wage is divided by 25 and while for companies with a work time system of five days a week, the monthly wage is divided by 21," he said.

He added that the determination of wages per hour can only be intended for workers/laborers who work part-time, through the calculation of the formula, namely wages per hour equal to wages a month divided by 126.