Jakarta: Minimum Monthly Wage Set at IDR 4.9-Million

Antara News are reporting that the Jakarta provincial government has issued Gubernatorial Decree No.1153 of 2022 on the 2023 Provincial Minimum Wage (UMP) which has been set at IDR 4,901,798 (approx. USD 311.6) per month for workers with an employment length of less than a year.

Acting Governor Heru Budi Hartono announced the policy through the Jakarta Legal Documentation and Information Network (JDIH) accessed on Monday, say Antara News.

Meanwhile, for workers, with an employment length of more than one year, companies are required to arrange and implement a wage structure and scale by seeing the workers’ ability and productivity as a guideline.

The policy, which will take effect from January 1, 2023, is also followed by assistance programmes for increasing workers’ welfare that applies to the workforce with Jakarta ID cards and is not limited by the length of employment.

The policies to improve workers’ welfare include assistance in transportation services, provision of food at low prices, and personal education costs. In the previous year’s UMP policy, the workers’ welfare policy was provided to help reduce the cost of living, report Antara News.

In determining the UMP, the provincial government also reduces transportation costs in Jakarta, which is said to account for 30-percent of a household’s total spending.

In terms of reducing the education costs, the Jakarta Smart Card (KJP) is given to children of eligible workers.

Provision of cheap food can be done through co-operatives managed by labour workers’ associations whose food needs are supplied by Jakarta province-owned market management company PD Pasar Jaya.

Earlier, Head of the Jakarta Manpower, Transmigration, and Energy Office Andri Yansah explained that the increase in UMP had reached 5.6-percent.

Yansah also noted that calculations of the 2023 UMP were referring to the 2022 UMP, which was IDR 4.6-million (approx. USD 292.5) per month or in accordance with Gubernatorial Decree No. 1517 of 2021.

Source: Antara News

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