Client Newsflash

New Minimum Wage for Certain Sectors for DKI Jakarta Province

The Governor of DKI Jakarta Province stipulates a new provincial sectoral minimum wages (“UMSP”) that apply to certain sectors in DKI Jakarta Province under the Governor Regulation No. 20 of 2017 dated February 14, 2017 on Provincial Sectoral Minimum Wages for 2017 (the “Regulation”). The Regulation stipulates 3 (three) following sectors that have to comply with the UMSP which shall be applied retroactively as of January 1, 2017:

  1. Chemicals, Energy, and Mining;
  2. Metals, Electronics, and Machinery; and
  3. Pharmaceuticals and Health.

It is mandatory for every employer in DKI Jakarta Province that engages in the abovementioned sectors to comply with the UMSP under the Regulation for all employees whose work period is less than 1 year. If the work period is more than 1 year, the monthly salary shall be determined between the employee and the employer.

Pursuant to the Regulation, the abovementioned sectors wage in DKI Jakarta Province are adjusted upward from the previous monthly wages under the Governor Regulation No. 8 of 2016 dated January 13, 2016 on Provincial Sectoral Minimum Wages for 2016, as elaborated in the following table.

March 29, 2017

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