Jakarta, hitclubapk3 Indonesia
—
The government has set provincial minimum wage regulations (
UMP
) 2026. This is stated in Government Regulation (PP) Number 49 of 2025 concerning Wages.
The regulation signed by President Prabowo Subianto on December 17 2025 revises PP Number 36 of 2021. There are at least 4 main changes in the new UMP regulations next year.
First,
certain index in the UMP calculation formula which increases to 0.5-0.9.Meanwhile, the alpha coefficient in the old rules, for example in determining the 2025 UMP, was in the range of 0.1 to 0.3.
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“The value of the alpha symbol as referred to in Paragraph (6) is determined by the Provincial Wage Council or Regency/City Wage Council by considering: a. the balance between the interests of workers/laborers and the company; and b. the comparison between the minimum wage and decent living needs,” explains Article 26 Paragraph (7) PP on Wages.
Second,
the difference lies in the type of wage that is added to the sectoral minimum wage.Sectoral minimum wages apply at the provincial and district/city levels.
Third,
The government gives the Regional Wage Council the task of determining wage policies.This is different from last year, where President Prabowo Subianto immediately announced that the 2025 UMP would increase by 6.5 percent simultaneously throughout Indonesia.
Next, differences
fourth
is the optimization of the function of the wage structure and scale.
“Employers are obliged to prepare and implement the structure and scale of wages in the company by taking into account the company’s capabilities and productivity, as well as class, position, length of service, education and competency,” explains Article 21 Paragraph (1).
Minister of Manpower (Menaker) Yassierli assesses that there is actually no significant difference between the UMP 2025 and UMP 2026 formulas.
This is because the formula for the 2026 UMP increase remains the same as the previous year, namely Inflation + (Economic Growth x Alpha).
“Nothing has changed in the formula, namely that the increase in wages is equal to inflation plus economic growth times alpha. The alpha is what the President (Prabowo Subianto) decided is 0.5 to 0.9,” explained Yassierli at a press conference at the Ministry of Manpower, South Jakarta, Wednesday (17/12).
“If someone asked earlier, how much will the increase be, Minister? Yes, it depends on each region. There are those who choose it, maybe 0.6; 0.7; 0.8. There is no such thing as a decrease in wages, because the formula is inflation, plus economic growth, times alpha,” he added.
For regions that record negative economic growth, Yassierli confirmed that the Regional Wage Council will consider increasing the 2026 UMP based only on inflation and alpha.
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(skt/sfr)
