Minister Asserts Minimum Wage Still Refers to Job Creation Law Derivatives

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah asserted that regulations on the regional minimum wage (UMR) still refer to new derivatives of the Job Creation Law. Ida made the statement in response to the call for the revision of the 2022 UMR calculation following the Constitutional Court’s ruling on the judicial review of the omnibus law.

“As the Constitutional Court declaring that Job Creation Law is still in effect, as conveyed by the President some time ago, all material and substance, as well as the rules, remain in effect without a single article being annulled by the Constitutional Court. On that basis, various implementing regulations of the law, including the regulation on wages, are still valid,” said Ida in a press release, Thursday, December 2.

She explained the implementing regulations for the labor cluster had been completed and passed before the Constitutional Court's ruling was announced. Thus, the current labor policy-making process must comply with these regulations, including on wages.

“So I ask all parties again, especially regional heads, to follow the wage provisions as regulated in PP 36/2021,” she underlined.

Ida added that the formulas of the provincial and city minimum wage (UMP and UMK) in PP 36/2021 are set to keep the gap between regions from widening further.

“We are optimistic that by overcoming the existing gaps, competitiveness will be leveraged, the investment climate and the business world will be more improved which will bring impacts on the creation and expansion of job opportunities. In the end, of course, it will improve people's welfare,” said the minister.

Read: Jakarta Governor Laments Provincial Minimum Wage Formula

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