Minimum wage calculated based on inflation rate: Minister

Minimum wage calculated based on inflation rate: Minister

Manpower Minister Hanif Dhakiri. (Ministry of Manpower)

Jakarta (ANTARA News) - The increase in the provincial minimum wage (UMP) for 2019 is calculated based on the inflation rate and economic growth, at 8.03 percent, Manpower Minister Hanif Dhakiri stated.

Calculation of the UMP is in accordance with Government Regulation (PP) No. 78 of 2015 on Wages.

The increase in the UMP, based on PP No. 78 of 2015, is the government`s all-out efforts in creating justice for all concerned comprising workers, employers, and would-be workers, Dhakiri noted in a press statement in Jakarta on Monday.

Dhakiri said the forecast increase in the UMP will facilitate employers and the business world to develop the company`s financial plan.

"If the wages suddenly skyrocket without being brought well under control, it will have an impact on layoffs and so on," the minister stated.

Dhakiri said the increase in the 2019 UMP was also the best choice for workers, as they will experience a significant increase in line with the economic growth and inflation rates as the instruments to calculate wage hikes.

"Workers need not be tired and concerned. No need to fuss and stage demonstrations. The wages are guaranteed to rise, and the increase is also significant," he stated.

With the corresponding increase in inflation, the government is optimistic that job seekers will get jobs.

"Do not let job seekers lose out on jobs, as job opportunities are narrowing as a result of too high wages," he pointed out.

Until now, 26 provinces have submitted reports on the establishment of the 2019 provincial UMP.

Eight other provinces have announced the amount of UMP, although they are yet to report it to the Ministry of Manpower.

Reporting by Aubrey Kandelila Fanani
Editing by Andi Abdussalam, Rahmad Nasution