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December 4, 2024 | 10:32 pm
TEMPO.CO, Jakarta - Indonesian Manpower Minister Yassierli said that workers can report business owners who fail to pay wages in accordance with the minimum wage set for 2025. The amount of next year's minimum wage is regulated by Ministerial Regulation No. 16 of 2024 on the 2025 Minimum Wage or UMP.
Yassierli explained that there are legal mechanisms for companies that do not apply the 2025 minimum wage. He stressed that the minimum wage regulations must be implemented within one year.
"If there are companies that do not apply the 2025 minimum wage, legal mechanisms will certainly apply. We also have labor inspectors, so later workers can report to labor inspectors," he said during a press conference at the Ministry of Manpower Office in South Jakarta on Wednesday, December 4, 2024.
In addition, the calculation formula used to determine the provincial minimum wage for 2025 is 2025UMP = 2024UMP + increase value of 2025UMP. The increase value of the 2025 UMP is 6.5 percent of the 2024 UMP.
The amount of the 2025 UMP increase was announced by President Prabowo Subianto after a limited meeting with some of his ministers at the Presidential Office, the Presidential Palace Complex in Jakarta on November 29, 2024. The ministers in attendance were Finance Minister Sri Mulyani Indrawati, Coordinating Minister for Economic Affairs Airlangga Hartarto, People's Empowerment Minister Muhaimin Iskandar, and Manpower Minister Yassierli.
The calculation of the 2025 UMP takes into account economic growth, inflation, and certain indices that represent the contribution of the labor force to the province's economic growth. Certain indices, according to Ministerial Regulation 16/2024, take into account the interests of companies and workers, as well as the principle of proportionality to meet the needs of workers for a decent living.
The calculation of the 2025 minimum wage is carried out by the Provincial Wage Council, which recommends the results to the Governor. Subsequently, the governor can set the minimum wages of districts/cities (UMK), which must be higher than the UMP.
All minimum wages regulated by Ministerial Decree 16/2024 will become effective on January 1, 2025.
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