Jakarta, hitclubapk3 Indonesia
—
The government will announce
wages
provincial minimum (
UMP
) 2026 in the near future.
Minister of Manpower Yassierli said that in contrast to the 2025 UMP which was set to increase simultaneously by 6.5 percent, the 2026 UMP uses a new, adjusted formula.
That way, the amount of the UMP increase in each region will be different.
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The government will adjust the alpha value or certain index that describes the contribution of labor to economic growth to a certain value.The alpha value was previously set in the range 0.1 to 0.3.
“The formula is clear, we refer to the formula as regulations already exist, that’s up to you later
range
how much is it related to alpha?”This is still waiting for finalization,” said Yassierli at Grha BNI, Central Jakarta, Friday (28/11), as reported by
detikfinance
.
After a meeting with President Prabowo Subianto yesterday, Yassierli said that the 2026 UMP determination would comply with the decision of the Constitutional Court (MK).
In this way, the 2026 UMP will be determined by involving the Provincial Regional Wage Council.Apart from that, determining wages will take into account a number of economic indicators.
“Yes, that is the mandate from the Constitutional Court, so the mandate from the Constitutional Court must consider the need for a decent living, must consider economic growth, must consider inflation, and then give authority to the Regional Wage Council to actively make recommendations to the Governor, just wait,” he said yesterday.
The government most recently regulated the labor wage formula in Government Regulation (PP) Number 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages.
However, PP51/2023 is no longer valid because it was canceled by the Constitutional Court (MK) Decision Number 168/PUU-XXII/2024 regarding the judicial review of the Job Creation Law (UU).
In the canceled regulation, the formula for increasing the UMP is as follows:
UM (t+1) = UM (t) + UM Adjustment Value x UM (t+1)
Minimum wage adjustment value formula:
Adjusted value UM (t+1) = {inflation + (PE x alpha)} x UM(t)
Description:
– UM (t+1) is the minimum wage that will be determined
– UM (t) is the minimum wage for the current year
– The inflation referred to is provincial inflation calculated from the September period of the previous year to the September period of the current year (in percent).
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