Different Ump, Umk And Umr That Often Confuse People: Here's The Explanation

Different Ump, Umk, Umr (Bermix Studio-Unsplash Image)

YOGYAKARTA - Obtaining a salary is something that makes everyone happy. But keep in mind, because we have to see if our salary is in accordance with the standard or not. For that we will learn what is different ump, umk, umr here.

Even though the salary in Indonesia itself already has standards, most people are still confused by what is called UMR, UMP and also UMK.

Getting To Know UMR?

Before talking much, of course, you must know what UMR is, because UMR itself stands for the Regional Minimum Wage. The determination of the UMR figure itself is regulated in the Minister of Manpower Regulation No. 1 of 1999. This provision was later revised to become the Decree of the Minister of Manpower and Transmigration No. 226 of 2000.

In the regulation, it is explained that UMR is the minimum wage set by the governor to be used as a reference for workers' income in their area. However, basically, since the regulations were changed, the UMR wage system is no longer indirect.

Then, UMR is determined based on Decent Living Needs (KHL) which is sourced on demand, consumer price index (JCI), ability, development, company continuity, general wage that applies in an area, market conditions, to the economic level and income per capita.

UMP and UMK

Currently, the government uses the term UMP (Provincial Minimum Wage) and UMK (Regency or City Minimum Wage) to replace UMR. It's just that there are still many people who use the term UMR as the mention of wages in an area.

In essence, the name UMP and UMK are derivatives of the term UMR. This is due to the Decree of the Minister of Manpower and Transmigration No. 226 of 2000. This confirms that the UMR Level I was changed to the Provincial Minimum Wage (UMP). On the other hand, the UMR Level II was changed to the District or City Minimum Wage (UMK).

Basically, before the name UMP and UMK were widely known, all mention of wages used the term UMR, both for Level I and Level II. Then what is the difference between UMP, UMK, UMR?

You should know, if the determination of the UMR Level I or UMP is carried out directly by the governor. Meanwhile, the UMR Level II or UMK is carried out by the governor proposed by the regent or mayor.

Then, what happens if a district or city has not been able to determine the UMK number? If this happens, the governor will use the UMP as a reference for giving wages in the district or city.

The calculation of the UMP is carried out using a certain formula that relates the calculation of year of year inflation and Gross Domestic Product (GDP) in the third and fourth quarters of the previous year as well as the first and second quarters of the year that are still running.

Meanwhile, the UMK is calculated by the district or city wage council which will then be given to the regent or mayor to be proposed to the governor of the local province.

Consideration Factors From Minimum Wage Determination

Before the UMP is increased, of course the government has calculated carefully. In addition, the determination of the minimum wage also includes several consideration factors, namely:

Hopefully what we learn above can be useful for your insights and as a consideration to determine how to find work.

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