2023 UMR Regional Minimum Wage: Which Region Has the Highest?

Salary—the payment from an employer to an employee for work performed—is a notoriously delicate topic to deal with, often resulting in a dispute between them. It is not surprising, however, since both parties have their own strong reasons for how much it should be.

To forestall potential disputes that can adversely impact business and the public at large, the government of Indonesia has introduced a regional minimum wage for each region in the country. 

It is regulated in Law Number 13 2003 on Employment, which defines a wage as an obligatory payment of a sum of money from an employer to an employee for services rendered.

The amount of wage is determined based on regional factors. The regulatory standard aims to prevent companies from unilaterally setting how much wages they should pay and employees from asking for too high a salary. It was originally called the standard of regional minimum wages, which is upah minimum regional (UMR) in Indonesian.

Some changes were made in the 2000 standard, and ever since, the standard has comprised provincial minimum wages (upah minimum provinsi or UMP) and regency/city minimum wages (upah minimum kota/kabupaten or UMK). However, the term UMR has lingered and is therefore still used from time to time to refer to the same thing.

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Regions With the Highest Minimum Wage in 2023

The government of Indonesia has introduced the 2023 UMR standard, which sets forth the minimum wage for each city and regency in Indonesia. Based on the standard, 10 regions make it to the list of regions with the highest minimum wage.

At the top of the list is Karawang Regency, with a minimum wage of 5,176,179 rupiahs. It is followed by Bekasi City and Bekasi Regency with minimum wages of 5,158,248 rupiahs and 5,137,574 rupiahs, respectively. The Special Capital Region of Jakarta is in fourth place with a minimum wage of 4,901,798 rupiahs, while Depok City ranks fifth with a minimum wage of 4,694,493 rupiahs.

Cilegon City’s UMR is set at 4,657,222 rupiahs, followed by Bogor City at 4,639,429 rupiahs and Tangerang City at 4,584,519 rupiahs.

At the bottom of the list are Tangerang Selatan City and Tangerang Regency, with minimum wages of 4,551,451 rupiahs and 4,527,688 rupiahs, respectively.

If you are looking for a well-paid job, this information should be very important to you. How much your pay is greatly impacts your motivation to do well at work.

And with allowances, the level of performance an employee can show will only get higher. Companies usually reward well-performing employees with bonuses.

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Remember that UMR defines the minimum pay an employee should receive in a particular region. Your salary can be far higher than that because you will likely receive allowances on top of the base pay set according to the standard.

It has also been a common practice for companies to provide bonuses to boost employees’ morale and performance and incentivize them to make more achievements. That is why you might earn many times the regulatory minimum wage.

That being said, the company you work for plays an important role. The larger and more established the company is, the higher your pay is and the better your quality of life is as a result.

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