Dewa W, Kenzu, Jakarta – The Jakarta provincial government has issued Gubernatorial Decree No. 1153 of 2022 on the 2023 Provincial Minimum Wage (UMP) at Rp4,901,798 (US$311.6) per month for workers, with employment length of less than a year.
Acting Governor Heru Budi Hartono announced the policy through the Jakarta Legal Documentation and Information Network (JDIH) accessed here on Monday.
Meanwhile, for workers, with an employment length of more than one year, companies are required to arrange and implement a wage structure and scale by seeing the workers' ability and productivity as a guideline.
The policy, which will take effect from January 1, 2023, is also followed by assistance programs for increasing workers' welfare that applies to the workforce with Jakarta ID cards and is not limited by the length of employment.
The policies to improve workers' welfare include assistance in transportation services, provision of food at low prices, and personal education costs. In the previous year's UMP policy, the workers' welfare policy was provided to help reduce the cost of living.
In determining the UMP, the provincial government also reduces transportation costs in Jakarta, which is said to account for 30 percent of a household's total spending.
In terms of reducing the education costs, the Jakarta Smart Card (KJP) is given to children of eligible workers.
Provision of cheap food can be done through co-operatives managed by labor workers' associations whose food needs are supplied by Jakarta province-owned market management company PD Pasar Jaya.
Earlier, Head of the Jakarta Manpower, Transmigration, and Energy Office Andri Yansah explained that the increase in UMP had reached 5.6 percent.
Yansah noted that calculation of the 2023 UMP referred to the 2022 UMP, which is Rp4.6 million (US$292.5) per month or in accordance with Gubernatorial Decree No. 1517 of 2021.