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Workers are certainly familiar with the terms Provincial Minimum Wages (UMP) and Regency/Municipality Minimum Wages (UMK). These determine the minimum wage for workers in each region.
UMP and UMK are the minimum wages that companies must provide to their workers, following the rules enacted by the governor (UMP) and the head of regency/municipality (UMK).
UMP is applied to all regencies/municipalities in a province. So, after the UMP is confirmed, each regency and municipality usually announces its UMK.
The UMP and UMK for 2024 were set at the end of 2023. The Minister of Manpower (Menaker) has instructed all provincial governors to determine and announce the 2024 UMP and UMK by November 21 and 30, 2023, respectively.
The Ministerial Order refers to the Government Regulation (PP) No. 51 of 2023 on the amendments to the PP No. 36 of 2021 on Wages.
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The order emphasizes that the UMP increase is an appreciation to workers who have contributed to the nation’s economic development.
It also instructs the employers to pay wages to the workers based on the agreement between both parties. The wage regulation agreed upon by employers, workers, or labor unions cannot be lower than the wage provisions set out in laws and regulations.
Article 23, paragraph 2 of the PP states that employers are prohibited from paying wages lower than the minimum wage. Wages must be adjusted to the amount of the provincial/regional minimum wage as determined for each region.
The Menaker asserted three key points to consider when implementing the minimum wage regulations as outlined in PP No. 51 of 2023.
The minimum wage set by provinces and regencies/municipalities applies to workers with less than one year of work experience.
The minimum wage adjustment or increase is determined by a formula using three main variables: inflation, economic growth, and a specific index symbolized by alpha in the PP 51/2023.
Workers with over a year of work experience are required to use a Productivity or Performance-Based Wage policy with a Wage Scale and Structure (SSU) system.
Employers violating the regulations will be subject to a penaltyas specified in Article 81, No. 63 of Law No. 11 of 2020 on Job Creation.
See also: Job Opportunities at Astra Group’s SERA in July 2024
According to the regulations, employers paying less than the minimum wage will be subject to criminal penalties, ranging from 1 to 4 years imprisonment and/or a fine between Rp100,000,000 (one hundred and million rupiahs) and Rp400,000,000 (four hundred million rupiahs).
There are 10 regencies and cities in Indonesia with the highest minimum wages in 2024. They are not only in the Jakarta–Bogor–Depok–Tangerang–Bekasi (Jabodetabek) areas but also in other regions.
Bekasi Municipality Rp5,343,430
Karawang Regency Rp5,257,834
Bekasi Regency Rp5,219,263
Special Capital City of Jakarta Rp5,067,381
Depok Municipality Rp4,878,612
Cilegon Municipality Rp4,815,102
Bogor Municipality Rp4,813,988
Tangerang Municipality Rp4,760,289
Surabaya Municipality Rp4,725,479, and
South Tangerang Municipality Rp4,670,091
However, the wages they receive can be higher than the UMP and UMK, depending on the business scale, profit, and the employee’s year of experience. Companies offering high wages are usually well-established, reputable, and credible.
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Therefore, it’s important to learn about the company’s background and culture before applying for a job. Choose a company with a good reputation and credibility, like PT Serasi Autoraya or SERA.
SERA was founded on 22 March 1990 and has become the leader in Indonesia’s logistics and transportation industry. Every year, this Astra Group’s company welcomes new members to fill various positions at the company.
SERA continues to provide opportunities for individuals qualified for positions at the company and its subsidiaries.
Details about job opportunities at SERA are available at its official website at www.sera.astra.co.id, or this direct link https://career.sera.astra.co.id/