DKI 2024 UMP Set At IDR 5.06 Million, Heru Budi Requires Companies To Implement Wage Scale Structure

Acting Governor Of DKI Heru Budi Hartono/DOK PHOTO: Diah Ayu-VOI

JAKARTA - Acting Governor of DKI Jakarta Heru Budi Hartono officially set the DKI Jakarta provincial minimum wage (UMP) in 2024 amounting to IDR 5,067,381 or IDR 5.06 million. With the nominal announced by Heru, the DKI Jakarta UMP in 2024 increased by Rp165,586 from the 2023 UMP which amounted to Rp4,901,798. The percentage increase in the UMP was 3.38 percent. The increase in the UMP is stated in the Governor's Decree (Kepgub) 818 of 2023 concerning the 2024 Provincial Minimum Wage. In the Governor's Decree on the 2024 UMP, Heru requires companies to implement the structure and scale of wages. The structure and scale of wages are the level of wages from the lowest to the highest by paying attention to the position group. "Entrepreneurs are obliged to compile and implement the structure and scale of wages in the company by taking into account the company's capabilities and productivity as a guideline for wages for workers/laborers with a working period of 1 year or more," Heru wrote in the governor's decree, quoted Tuesday, November 21. With the instructions for this structure and scale of wages, Heru emphasized that the UMP equivalent wage only applies to employees who work less than a year. "The provincial minimum wage in 2024 will take effect starting January 1, 2024 and applies to workers who have a working period of less than 1 year," explained Heru. The determination of the amount of the UMP as outlined in the gubernatorial decree is based on the evaluation of the Wage Council session discussed by the government, elements of entrepreneurs, elements of workers, and other stakeholders. The Wage Council session which was held on Friday, November 17 last time was tough. Like in previous years, members of the Wage Council from elements of entrepreneurs disagreed with the elements of workers in recommending an increase in the UMP. Finally, the Wage Council session produced three different recommendations. Recommended Jakarta UMP in 2024 from the entrepreneur's element of IDR 5,043,068. This amount is generated from the formula regulated in Government Regulation (PP) Number 51 of 2023 concerning Wages using alpha 0.20 from DKI Jakarta's economic growth.

Meanwhile, the labor group gave a recommendation for the value of the 2024 UMP of Rp5,637,068. They did not use the formula (PP) Number 51 of 2023 which became the reference for the central government, but the DKI Jakarta Inflation was 1.89 percent, plus DKI Jakarta's economic growth was 4.96 percent, plus a certain index of 8.15 percent. Then, the government element also provides recommendations that still refer to PP Number 51 of 2023. However, the DKI Provincial Government uses alpha 0.30 from Jakarta's economic growth which produces a figure of Rp5,067,381.