What Is with the Postponement of Minimum Wages Ratifications?

Summary

The government has postponed the ratification of the new provincial minimum wages (UMP) and the regency/city minimum wages (UMK). The 2023 UMP, which should have been ratified on Nov 21, was postponed to Nov 28, while the UMK, which should have been announced on Nov 30, was postponed to Dec 7, all of which are based on the Manpower Ministerial Regulation No. 18/2023 on provincial minimum wages.

Manpower Minister Ida Fauziyah hoped the decision would give regional wage councils enough time to calculate the 2023 minimum wages according to the new formula. "The UMP and UMK that have been set will take effect on Jan 1, 2023," Ida said on Monday. On a separate occasion, Indonesian Employers' Association (Apindo) deputy chairman Anton Supit pointed out that Manpower Ministerial Regulation No. 18/2023 contradicts Law No. 11/2020 on job creation. In the Job Creation Law, remuneration should refer to Government Regulation (PP) No. 36/2021. "If a ministerial regulation is not in line with the law or PP, is it right or wrong?" he said.

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