TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah ensured that there will be a hike in the minimum wage next year. She said the calculation was adapted to data on the country’s economic growth and inflation.

“Basically, it can be seen that the minimum wage in 2023 will be relatively higher than that in 2022 based on data on economic growth and inflation,” said Ida at the meeting with Commission IX of the House of Representatives (DPR), Jakarta, Tuesday, November 8, 2022.

Based on data from Statistics Indonesia (BPS), the country’s economic growth in the third quarter of 2022 grew by 5.72% and the inflation rate was 5.95%. Meanwhile, in October 2022, the inflation rate was recorded at 5.71 percent on an annual basis or year-on-year (yoy).

Ida explained that workers' minimum salary was determined by using the formula noted in Government Regulation (PP) No. 36 of 2021 concerning wages which refers to Law (UU) No. 11 of 2020 concerning job creation.

“The minimum salary is calculated using a formula that contains variables of economic growth or inflation. If we look at these two indicators, it can be seen that the minimum wage in 2023 is relatively high,” Ida emphasized.

On Monday, November 7, 2022, Manpower Ministry’s director general, Indah Anggoro Putri, disclosed that each governor will announce the 2023 provincial minimum wage on November 21, 2022.

NABILA NURSHAFIRA

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