2021 Minimum Wage
The government has decided not to increase the minimum wage for 2021. It has also implied that the basic cost of living (KHL) will not be used as a consideration for future minimum wage calculation.
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Labor activists raise their fists during a peaceful rally to protest the Job Creation Law on Tuesday (27/10/2020) outside the East Java Governor’s office in Surabaya.
The government has decided not to increase the minimum wage for 2021. It has also implied that the basic cost of living (KHL) will not be used as a consideration for future minimum wage calculation.
This is definitely not a decision that is going to be well received by workers, but the government has stated that this is the best decision that can be made amid the current situation. The Manpower Minister said the decision was a middle road to accommodate the interests of both workers and employers who were equally hit by the COVID-19 pandemic. It is to ensure businesses’ sustainability as well as to maintain employment for workers.