New Wage Regulation to Apply Salary Cap

Summary

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.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.