Anies Baswedan Issues Regulation Related to 2022 Minimum Wage

TEMPO.CO, Jakarta - Jakarta Governor Anies Baswedan on Monday officially banned employers from paying their workers who have served under one year below the 2022 minimum wage. He reminded that sanctions for companies violating this rule have been set in place. 

The sanctions are mentioned in the Jakarta Governor’s Regulation No.1517/2021 overseeing the 2022 minimum provincial wage that revises next year’s minimum wage to Rp4,641,854. This regulation was signed by the governor on December 16 and will be made effective as of January 1, 2022. 

“Companies that violate the provisions which are already set in place can be subjected to sanctions in accordance with the law,” the governor’s order reads. 

Meanwhile, employees who have served over a one year period will be subjected to the following rule: “Employers must formulate and implement a salary structure and scale that recognize the company’s productivity and ability as a guideline on wages for employees who have served for one year and over.”

The city’s Workforce, Transmigration, and Energy Agency Head, Andri Yansyah, confirmed that the 2022 provincial minimum wage will not see further revisions. “There will be no more chances for it to be revised again,” he said at the Jakarta Legislative Council (DPRD Jakarta) building on Monday, December 27.

Despite insisting on no further revisions, he said the city is open to discussions with employers based in Jakarta if a company’s economy failed to grow amid the COVID-19 pandemic.

Read: Manpower Ministry Laments Anies Baswedan's Decision on Minimum Wage

LANI DIANA WIJAYA