Page 644 - E-KLIPING KETENAGAKERJAAN 19 NOVEMBER 2021

According to her, the regency/municipality minimum wage (UMK) must be determined no later
than 30 November 2021 after the determination of the UMP.
The Minister said that the provisions for the deadline have been reaffirmed in Circular of Minister
of Home Affairs Number 561/6393/SJ on the determination of the 2022 minimum wage, which
was sent to all governors.

Ida further emphasized that the determination of the 2022 minimum wage is based on Job
Creation Law and Government Regulation Number 36/2021 as its derivative regulation.

The minimum wage aims to provide protection to workers/laborers so that their wages are not
too low due to their weak position in the labor market.

On that occasion, Ida also revealed that the minimum wage is the lowest wage set by the that
applies to workers/laborers with working period less than one year at the company concerned.
Furthermore, the Minister underscored that according to Government Regulation Number 36 of
2021, the minimum wage is set based on areas, namely the UMP and the UMK.

The minimum wage is no longer set based on sector or sectoral minimum wage (UMS).

However, the UMS that has been set before 2 November 2020 will remain valid until the UMS
ends or until the UMP/UMK in the area is raised.
(WAH).

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