2023 Minimum Wage Debacle

As in almost every year previously, chaos has again erupted following the government's determination of the 2023 minimum wage.

KOMPAS/AGUS SUSANTO

Workers demonstrated at the Bekasi City Manpower Office in West Java, Tuesday (29/11/2022). They demanded an increase in the 2023 city minimum wage wage (UMK) of 13 to 20 percent.

The government, on 16 Nov. through Manpower Minister Decree (Permenaker) No. 18/2022, stipulated a maximum increase of 10 percent for the 2023 minimum wage (UM). Through the decree, governors throughout the country must determine their 2023 provincial minimum wages on 28 Nov., followed by the determination of the 2023 regency/municipal minimum wages on 7 Dec.

The minimum wage increase is determined in consideration of economic growth, inflation, and certain indexes on the labor contribution to the economy.