Minimum Salary Predicted to Rise Slightly

Director of Labor Relations and Wages at the Ministry of Manpower, Dinar Titus Jogaswitani,
said his ministry was still waiting for the latest data from the Central Statistics Agency (BPS) regarding the variables needed to determine the provincial minimum wage (UMP). "If we look at the current conditions, especially due to the second wave of the Covid-19 pandemic, it can be seen that there is a significant impact on the economy in Indonesia," he said in a written message. . He ensured that the data presented by the statistical authority would describe the current real situation of economic growth and inflation. "The determination of the minimum wage in 2022 is predicted to increase in the majority, although it has not been able to meet the expectations of the parties. This must be appreciated as a step forward considering that we are still recovering from the effects of Covid-19," he said. The National Wage Council (Depenas) and the National Tripartite Cooperation Institute (LKS Tripnas) have held a meeting on 21-22 October 2021 in Jakarta. The meeting agreed to encourage the determination of the UMP in accordance with the provisions of Government Regulation no. 36/2021 on Wages. "For parties who are not satisfied, they can use a lawsuit mechanism in accordance with the provisions of the legislation," he said. On the other hand, the percentage increase in the minimum wage is potentially lower than the previous year, in line with the implementation of a new calculation method for calculating the minimum wage. Secretary General of the All-Indonesian Workers Organization (OPSI) Timboel Siregar explained that the determination of the 2022 minimum wage will refer to PP. 36/2021 in lieu of PP No. 78/2015. According to him, the calculation of the minimum wage will use a number of new variables. In the old regulation, the increase in the minimum wage refers to the rate of inflation and economic growth for the current year.


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