Jakarta sets 2024 minimum wage at Rp5 million

Jakarta sets 2024 minimum wage at Rp5 million

Acting Jakarta governor Heru Budi Hartono (second from the left) announced Jakarta's minimum wage for 2024 at the Jakarta City Hall on Tuesday (November 21, 2023). (ANTARA/Siti Nurhaliza/rst)

Jakarta (ANTARA) - Acting Jakarta governor Heru Budi Hartono on Tuesday announced that the provincial minimum wage (UMP) for 2024 has been determined at Rp5.067 million, an increase from Rp4.9 million the previous year.

"The increase for the 2024 UMP is 3.38 percent, or Rp165,583, from the previous year," he said at the Jakarta City Hall on Tuesday.

According to Hartono, the Jakarta provincial government will implement the new UMP through the Governor's Decree Number 818 of 2023 concerning the 2024 provincial minimum wage.

The minimum wage was calculated based on a formula specified in Government Regulation Number 51 of 2023 concerning amendments to Government Regulation Number 36 of 2021 concerning wages.

"The Jakarta government has set the highest alpha, namely alpha 0.3, according to Government Regulation Number 51 of 2023. The regional government cannot exceed the alpha from the regulation," he informed.

Hartono said that the UMP for Jakarta province for 2024 was determined using a formula specified in the rules, which also factored in the city's inflation rate, economic growth, and a certain Alpha Index of 0.3.

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The UMP calculation came to Rp5,067,381, which would apply to workers with less than one year of service.

The regional government also reminded entrepreneurs to regulate the structure and wage scale in their companies.

While setting the wage scale structure, companies must use their capability and productivity as a guideline for deciding the wages of workers who have worked for them for one year or more, Hartono said.

"We will carry out supervision and impose sanctions on entrepreneurs who do not comply with these obligations," he emphasized.

His administration is also continuing to devise policies to maintain workers' purchasing power and improve the welfare of workers in some other aspects

The policies will cover workers holding Jakarta Worker Cards who meet certain criteria, namely they have an identity card (KTP) showing they are Jakarta residents earning a maximum salary of 1.15 times the UMP, without being limited by working period or other criteria, as per regulations.

The policies cover assistance such as transportation services, affordable food, JakGrosir membership, and personal education costs, Hartono said.

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