New Wage Regulation to Apply Salary Cap


President Joko Widodo set the latest wage formula in the Government Regulation (PP) No. 36/2021 on Wages, posing as the secondary legislation of Law No. 11/2020 on Job Creation.

Manpower Ministry’s Director of Wages at the Directorate General of Industrial Relations Development and Workers Social Security, Dinar Titus Jogaswitani, said the wage formula would be based on economic and labor conditions, factoring in purchasing power parity, employment rate, median wages, and economic growth or inflation at the provincial level. "It portrays the real wages of each province," he said.

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