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Several provinces have announced the new 2024 provincial minimum wages (UMP). The increase in minimum wages is based on Government Regulation (PP) No. 51/2023 on the amendments to Government Regulation (PP) No. 36/2021 on Wages. The new UMP is set to appreciate the workers’ contribution to the national economic development.
The Ministry of Manpower (Menaker), Ida Fauziyah, has instructed all provincial governors in Indonesia to determine the 2024 UMP increase no later than November 21, 2023, and regency minimum wages (UMK) on November 30, 2023.
Director General of Industrial Relations Development and Employment Social Security of the Ministry of Manpower (Dirjen PHI Jamsos), Indah Anggoro Putri, said in her official statement that the 2024 minimum wage rise does not amount to more than Rp 200,000 because it only applies to workers with less than one year of service.
“Note that the new wage regulation only applies to new workers with less than one year of service. Therefore, the increase will not amount to Rp 1-2 million. The 2024 UMP increase is intended to appreciate the fresh graduate’s hard work,” she explained.
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The 2024 UMP adjustment is also expected to run the dynamics of the national economy. It will increase employees’ value in the job market and encourage them to contribute more to the nation’s economy.
The government has determined the new minimum wage for 2024, and DKI Jakarta has become the province with the highest UMP in Indonesia. The amount rose by Rp 165,583, making the province’s UMP to increase from Rp 4,901,798 to Rp 5,076,381.
During the official announcement of the UMP increase in Balai Kota DKI Jakarta on November 21, the acting governor of DKI Jakarta, Heru Budi Hartono, said that the determination of minimum wages is based on a thorough discussion involving companies, the government, and trade union representatives. “The agreed new minimum wage has represented the mutual interest of all parties concerned,” Heru said.
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Employees are undisturbed about the companies’ implementation of the new UMP regulations.
This is due to Government Regulation No. 36/2021 Article 23 paragraph 2, which prohibits businesspeople from paying wages lower than the minimum wage. Those doing so will be exposed to multiple penalties.
The penalties include imprisonment and fines, as regulated in Article 81 point 63 of Law No. 11/2020 on Job Creation.
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The Article specifies that businesspeople paying wages lower than the minimum wage are subject to imprisonment for a minimum of 1 (one) year and a maximum of 4 (four) years or a fine for a minimum of Rp 100,000,000 (one hundred million rupiahs) and a maximum of Rp 400,000,000 (four hundred million rupiahs).
On the other hand, most leading companies with good credibility have ensured that the new minimum wage implementation is well underway.
This implementation is the companies’ commitment to maintaining professionalism and taking good care of their employees and partners.
Instead of treating employees as mere workers to run the business, some companies regard their employees as assets and partners to accomplish goals and achieve more outstanding performance in the future.
There may be a few companies with such philosophies and principles, one of them is PT Serasi Autoraya or better known as SERA.
SERA was founded on March 22, 1990, and has become Indonesia's transportation and logistics industry leader. This Astra Group’s company welcomes new members to fill various positions every year.
SERA continuously provides opportunities for individuals qualified for positions at the company and its subsidiaries.