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Minimum Wage Set for 8.03% Rise in 2019

Employment
  • The Minister of Manpower (“Minister”) has issued the Circular of the Minister No.  B.240/M-NAKER/PHISSK-UPAH/X/2018 on Notifications of National Inflation Rate Data and Gross Domestic Product Growth for 2018 (“Circular 240/2018”), which specifically addresses the 2019 minimum wage.
  • Circular 240/2018 requires the mandatory implementation of the following measures: 1) Governors are being urged to determine the Provincial Minimum Wage (“UMP”) for 2019 using the provisions which are addressed under Regulation of the Government No. 78 of 2015 on Wages (“Regulation 78/2015”); 2) UMP for 2019 must be stipulated and announced simultaneously by each governor on 1 November 2018; 3) Meanwhile, Regency/City Minimum Wages (“UMK”) (if determined by the governor) must be stipulated and announced by no later than 21 November 2018; and 4) Both UMP and UMK will apply from 1 January 2019.
  • The Minister has suggested an 8.03% increase in UMP and/or UMK in 2019, as the national inflation rate is currently running at 2.88%, while national economic growth is currently running at a rate of 5.15%.
  • For more on Regulation 78/2015, see ILB No. 2750.
  • For more on this story, see Hukumonline: “Surat Edaran Menaker Sudah Terbit, Ada Kenaikan UMP/UMK Tahun 2019?”
......

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  • The Minister of Manpower (“Minister”) has issued the Circular of the Minister No.  B.240/M-NAKER/PHISSK-UPAH/X/2018 on Notifications of National Inflation Rate Data and Gross Domestic Product Growth for 2018 (“Circular 240/2018”), which specifically addresses the 2019 minimum wage.
  • Circular 240/2018 requires the mandatory implementation of the following measures: 1) Governors are being urged to determine the Provincial Minimum Wage (“UMP”) for 2019 using the provisions which are addressed under Regulation of the Government No. 78 of 2015 on Wages (“Regulation 78/2015”); 2) UMP for 2019 must be stipulated and announced simultaneously by each governor on 1 November 2018; 3) Meanwhile, Regency/City Minimum Wages (“UMK”) (if determined by the governor) must be stipulated and announced by no later than 21 November 2018; and 4) Both UMP and UMK will apply from 1 January 2019.
  • The Minister has suggested an 8.03% increase in UMP and/or UMK in 2019, as the national inflation rate is currently running at 2.88%, while national economic growth is currently running at a rate of 5.15%.
  • For more on Regulation 78/2015, see ILB No. 2750.
  • For more on this story, see Hukumonline: “Surat Edaran Menaker Sudah Terbit, Ada Kenaikan UMP/UMK Tahun 2019?”
......

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