5.1% Increase in the Provincial Minimum Wage for Jakarta Set for Introduction in January 2022

  • Through assessments of economic growth and the rate of inflation in Jakarta, the Governor of DKI Jakarta, Anies Baswedan, has finally issued Decree No. 1517 of 2021 ("Decree 1517/2021") on the Provincial Minimum Wage (Upah Minimum Provinsi – "UMP"), which will come into force on 1 January 2021. Decree 1417/2021 officially sets a 2022 UMP for DKI Jakarta which has been increased by 5.1% to Rp. 4,641,854, which represents an improvement over the previous stipulation of only 0.85% to Rp. 4,453,935. The aforementioned UMP provisions apply to workers who have been employed for periods of less than a year.
  • Moreover, the new decree mandates that business actors should arrange wage structures and scales in accordance with the new 2022 UMP and are prohibited from setting any wages that amount to less than the newly established UMP. Any failure to do so will result in the imposition of various sanctions in accordance with the relevant laws and regulations. 
  • In addition to the aforementioned provisions, the Provincial Government of DKI Jakarta has also provided a number of other facilities for workers, such as the issuance of the Jakarta Worker’s Card (Kartu Pekerja Jakarta), which covers various transportation and logistical benefits for workers. (ANT)
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  • Through assessments of economic growth and the rate of inflation in Jakarta, the Governor of DKI Jakarta, Anies Baswedan, has finally issued Decree No. 1517 of 2021 ("Decree 1517/2021") on the Provincial Minimum Wage (Upah Minimum Provinsi – "UMP"), which will come into force on 1 January 2021. Decree 1417/2021 officially sets a 2022 UMP for DKI Jakarta which has been increased by 5.1% to Rp. 4,641,854, which represents an improvement over the previous stipulation of only 0.85% to Rp. 4,453,935. The aforementioned UMP provisions apply to workers who have been employed for periods of less than a year.
  • Moreover, the new decree mandates that business actors should arrange wage structures and scales in accordance with the new 2022 UMP and are prohibited from setting any wages that amount to less than the newly established UMP. Any failure to do so will result in the imposition of various sanctions in accordance with the relevant laws and regulations. 
  • In addition to the aforementioned provisions, the Provincial Government of DKI Jakarta has also provided a number of other facilities for workers, such as the issuance of the Jakarta Worker’s Card (Kartu Pekerja Jakarta), which covers various transportation and logistical benefits for workers. (ANT)
......

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