UMP 2024 Rises, Here Are 3 Factors That Affect The Minimum Wage

Wage illustration (Photo: Antara)

YOGYAKARTA The drinking wage is the lowest monthly wage set by the Governor as a safety net. There are a number of factors that affect the drinking wages. Anything? Check out the full information below.

Previously, the government through the Ministry of Manpower reminded governors in all provinces to determine and announce the increase in the provincial minimum wage (UMP) in 2024 no later than November 21, 2023.

Meanwhile, the Regency/City Minimum Wage must be determined by regional heads no later than November 30, 2023.

"I remind you again, Governor, Regent and Mayor, that the policy of determining the Minimum Wage must be based on the Regulation of the Government (PP) No. 51 of 2023 concerning Amendments to PP 36/2021 concerning Wages," said Ida, in an official statement, quoted by VOI, Tuesday, November 21, 2023.

"PP 51 of 2023 has been determined by the President of the Republic of Indonesia and then in Law on November 10, 2023," added Ida.

Please note, the increase in the minimum wage is a common change from year to year. The goal is to provide benefits that are relevant to the needs of workers in each province in Indonesia.

Based on the Regulation of the Minister of Manpower Number 18 of 2022 concerning the Determination of Minimum Wage in 2023, an increase in the minimum wage is made by considering a number of factors, namely:

Based on Permenaker No. 18/2022, the increase in the provincial minimum wage can be calculated with the following formula.

UM (t+1) is the Minimum Wage to be applied. While the UM (t) is the Minimum Wage of the Year.

Meanwhile, the minimum wage adjustment value can follow the following formula:

Symbolism is a certain index that represents the contribution of labor to economic growth at the provincial or city/district level. Symbols of fire are variables in the range of values 0.10 to 0.30.

The determination of the value of the symbol is carried out by the Provincial Wage Council or the City/Regency Wage Council by considering two variables:

There are other factors that influence certain indexes, namely factors relevant to the condition of employment. If the minimum wage adjustment is made from a smaller or equal calculation to zero, the minimum wage that will be applied is the same as the minimum wage value of tofu running.

Although the government has increased the minimum wage benchmark, not all companies are following the policy. As is known, until now there are still many workers who receive salaries under the regional UMP maasing.

In this regard, there are several factors that affect the increase in employee wages in companies, including:

This is information about factors that affect the minimum wage. Get news updates of other options only on VOI.ID.