Manpower Minister: Minimum Wage in 2022 to Follow Job Creation Law

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  • TEMPO.CO, JakartaManpower Minister Ida Fauziyah submitted a report on the 2021 minimum wage circular to the House of Representatives (DPR) Commission overseeing manpower. 

    “The minimum wage in 2022 is determined based on the Job Creation Law,” said Ida during the hearing with the DPR on Wednesday, November 25, 2020.

    Ida and her staffers were drafting four derivative regulations of the law. One of them is the revision of Government Regulation (PP) No. 78 of 2015 concerning Wages.

    Several main points made in the revised law are related to the basis and procedures for determining the Provincial Minimum Wage (UMP) and Regency/City Minimum Wage (UMK), as well as the requirements and the calculation for the salary hike.

    Additionally, the derivative rules will stipulate the minimum hourly wage provisions, the wage provisions for micro and small enterprises, and the wage board.

    The UMP, she added, would still be ruled in the Job Creation Law, while the UMK would be applied under conditions.

    The District/City Sectoral Minimum Wage (UMSK), however, would be removed and changed into an agreement between the company and the workers.

    Read: Governors Raise 2021 Minimum Wage, Employers Association Disappointed

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