- The Jakarta Provincial Wage Council has completed discussions relating to the 2024 Provincial Minimum Wage (UMP). These discussions have resulted in three nominal wage proposals from each of the relevant parties, specifically: 1) Businesses (Rp. 5,043,068 - 2.9%); 2) Labor unions (Rp. 5,637,068 – 15.0%); and 3) The Jakarta Provincial Government (Rp. 5,067,381 - 3.4%).
- Labor unions, acting through their representative, Dedi Hartono, have stated that they have consistently fought for a 15% UMP increase for 2024 which, Mr. Hartono claimed, was calculated from appraisals of inflation (1.89%), economic growth (4.96%) and certain other indices (8.15%). According to Mr. Hartono, this calculation is still less than the upper wage calculation threshold issued by the Statistical Center Agency (BPS).
- Furthermore, labor unions have also identified a problem related to the minimum wage, specifically its focus on single workers and zero-work periods. Under the current system, the minimum wage has only been established as a minimum safety net. However, in practice companies use the minimum wage as a guide for the payment of the vast majority of their workers, even if said workers have been employed for periods that exceed one year.
- Meanwhile, businesses have proposed a 2024 UMP of Rp. 5,043,068, which is the result of a minimum wage calculation that was completed in line with Regulation of Government No. 51 of 2023. However, certain businesses have declared that this figure will prove to be an excessive burden on the business world and will ultimately result in a reduction in investment, while affecting government policies towards workers with a zero work period.
- For more on this story, see Hukumonline: “Dewan Pengupahan Jakarta Usul 3 Besaran UMP 2024”
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