Ministry Postpones Date for Minimum Wage Determination

Tempo
2024-11-20

TEMPO.CO, Jakarta - The Ministry of Manpower has postponed the date for setting the provincial minimum wage (UMP) and the district/city minimum wage (UMK) for the year 2025. Initially, the UMK and UMP amounts for 2025 were scheduled to be announced tomorrow, Thursday, November 21.

"The determination is postponed," said the Ministry's Director General of Industrial Relations Development and Social Security of Manpower (PHIJSK), Indah Anggoro Putri, in a text message on Wednesday, November 20.

This postponement is due to the new regulations that will stipulate the calculation scheme of the minimum wages that have not yet been ratified. However, the expected date of approval of the regulation is still unknown.

Meanwhile, the chairman of the Manpower Division of the Indonesian Employers' Association (Apindo), Bob Azam, said that discussions on the 2025 wage scheme were still ongoing by the National Wage Council (Depenas). This comprises three parties, namely the government, employers' associations, and trade unions.

"As far as I know, the wage negotiations are still ongoing at Depenas. Whether or not the date of the decision is postponed is up to the Minister," said Bob when contacted on Wednesday, November 20, 2024.

Apip Johan, the deputy head of the National Agency for Tripartite Cooperation (LKS Tripnas) from the trade union sector made a similar statement. He said that there is still no regulation on the minimum wage for 2025. The agreement on the wage system has also not been reached.

"Most likely, the determination of the minimum wage will be postponed because the ministerial regulation has not yet been issued," Apip said when contacted via a messaging application on Wednesday, November 20, 2024.

The minimum wage is calculated based on the formula in Government Regulation (PP) No. 51 of 2023. This regulatory change is a direct mandate from the Constitutional Court's decision regarding the Job Creation Law. 

Editor's Choice: Manpower Ministry on 2025 Minimum Wage: As Per PP 51/2023

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