"Wage increase is one of the important aspects of improving the welfare of workers/labourers," Manpower and Transmigration Minister Muhaimin Iskandar said here on Tuesday.
He said that the wage increase should however be accompanied with an increase in productivity so that companies would be able to develop and expand their businesses which would in turn create new jobs.
Data at the ministry of manpower and transmigration indicated that the UMP as a whole covered about 89.78 percent of the average national decent living costs (KHL) in the country`s 33 provinces in 2013.
The highest regional wage increase was recorded in East Kalimantan which rose 48.86 percent from Rp1,177,000 in 2012 to Rp1,752,013 in 2013, while the lowest increase was seen in West Sulawesi which increased 3l.37 percent from Rp1,127,000 in 2012 to Rp1,165,000 in 2013.
The biggest wage increase in 2013 took place in Jakarta which increased to Rp2,200,000. Four provinces did not set a new wage increase, namely West Java, Central Java, East Java and Yogyakarta.
The minister said that the government, employers and workers agreed to pursue gradual wage increases. The amount of average increase of wages every year could not, however, be set equally as it depended on a number of indicators, namely the inflation rate, economic growth and the ability of employers in respective regions.
"It should be understood that the UMP concept is the lowest rate designed for a single worker with a work experience less than one year. The minimum wage standard is set only as a social safety net standard," the minister said.(*)