Netizen Journalist

Today is the Last Deadline for the Governor to Announce the 2023 Provincial Minimum Wage

Holiday Ayo - The Ministry of Manpower has set a deadline for local governments to announce the amount of the 2023 Provincial Minimum Wage (UMP) increase by Monday (28/11).

This is in accordance with the Regulation of the Minister of Manpower (Permenaker) Number 18 of 2022, whereby the determination and announcement of the 2023 UMP, which was previously no later than 21 November 2022, was then extended to 28 November 2022.

Whereas the previous Employee Minimum Wage (UMK) was no later than November 30, 2022, to December 7, 2022. The Permenaker also stipulates that the 2023 UMP increase is a maximum of 10 percent.

It is this last point that is being protested by the workers as well as the employers. The workers want an increase in the 2023 UMP above 10 percent. Meanwhile, employers consider that the regulation creates dualism in policy.

As cited from tribunnews.com, Chairman of Kadin Arsjad Rasjid stated that his party would conduct a judicial review of the regulation at the Supreme Court (MA).

Arsjad said that the lawsuit was filed because the business community still wanted to adhere to Government Regulation (PP) Number 36 of 2021 concerning Wages, which is a derivative regulation of the Job Creation Law.

According to him, PP 36/2021 reflects investment stability, worker welfare, and justice for employers.

"To ensure that this policy is not counterproductive, Kadin together with the Employers' Association and all Kadin member companies will be forced to carry out a judicial review of Permenaker Number 18/2022," said Arsjad.

"However, whatever the outcome, business actors are ready to comply," he said.

One of the differences in the legal basis for calculating the 2023 UMP increase can be seen in DKI Jakarta.

DKI Jakarta Manpower, Transmigration and Energy Agency (Kadis Naker) Head Andri Yansyah conveyed that the proposal from the provincial government was an increase of 5.6 percent.

"During the meeting of the wage council, elements of the government proposed that in accordance with Minister of Manpower Regulation (Permenaker) Number 18 of 2022, use an alpha of 20 percent, equivalent to IDR 4,901,798 or an increase of 5.6 percent," said Andri some time ago.

"Kadin proposed that the UMP should follow Permenaker 18 2022, but he took an alpha of 10 percent, because of that there is an alpha of 10, 20.30. He proposed the figure of IDR 4,879,053 or 5.11 percent," he said.

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