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Manpower ministry hints hike in workers' minimum wage next year

Tempo - October 31, 2022

Bisnis.Com, Jakarta – The Manpower Ministry showed a sign regarding the hike in workers' minimum wage (UMP) in 2023 which will be announced at the end of November 2022. Manpower Minister Ida Fauziyah said her side was still finalizing the matter by considering workers' suggestions.

"[The next year's amount of] UMP in being processed. I have asked the Director General [for industrial relations and labor inspection] to listen to the aspirations of the workers," explained Ida at JCC, Jakarta, Sunday, October 30, 2022.

When asked about the possibility of a wage increase, Ida claimed there would be a few percent hikes. Previously, workers demanded a 13-percent increase in wages in 2023 due to inflation and economic growth.

Meanwhile, the National Wage Council (Depenas) deputy chairman Adi Mahfudz Wuhadji said inflation would certainly be a consideration for the 2023 minimum wage.

"So the increase is actually a consequence of inflation or economic growth. That's what we need to know. When we talk about regulation, we set it, so it's not an increase. If it's increased, it's because of inflation or economic growth," he said.

In 2021, the 2022 minimum wage is stipulated in Government Regulation No. 36/2022, with an increase of 1.09 percent from the previous year.

Source: https://en.tempo.co/read/1651211/manpower-ministry-hints-hike-in-workers-minimum-wage-next-yea