Ministry Of Manpower Reminds Governors To Immediately Set Provincial Minimum Wage

Minister of Manpower Ida Fauziyah while attending a technical coordination meeting on the 2024 Minimum Wage Determination Policy in Jakarta, Monday (20/11/2023). (ANTARA/HO-Kemnaker)

JAKARTA - The Ministry of Manpower reminded the governors of the announcement of the determination of the provincial minimum wage in 2024 no later than November 21, 2023. Meanwhile, the district and city minimum wages for the year must be set no later than November 30, 2023.

The Minister of Manpower Ida Fauziyah reminded governors, regents and mayors that the policy regarding the determination of the minimum wage must be based on Government Regulation (PP) No. 51 of 2023 concerning Amendments to PP 36/2021 concerning Wages which has been in effect since November 10, 2023.

In a technical coordination meeting on the policy of determining the minimum wage in 2024 on Monday (20/11), Ida said the minimum wage at the provincial and district/city levels must be determined based on input from the Wage Council.

According to him, the Ministry of Manpower has socialized the contents of the rules regarding Wages in PP No. 51 of 2023 to the heads of the labor service at the provincial and city district levels, trade unions, employers, and experts on November 13, 2023.

He conveyed that the provincial and district/city level minimum wage policies were in accordance with applicable regulations for workers with a working period of under one year.

The formula for adjusting or increasing the minimum wage, he continued, includes three main variables which include inflation, economic growth, and certain indexes that are symbolized as Alpha in PP No. 51 of 2023.

The Minister of Manpower explained that workers' wages/laborers with a working period of more than one year or more must refer to productivity-based wage or performance policies using wage-scale structure instruments.

"This means that workers/laborers with a working period of more than one year are entitled to be paid or paid above the minimum wage which is adjusted to the output (results) of performance or productivity of workers and the company's capabilities," he said.