Every employee has the right to earn income that could fulfill their proper life standard. To realize the proper income, the government stipulates the regulation on wages. One of the regulations regarding wages is provincial minimum wages. Therefore, based on the recommendation from the Provincial Remuneration Board of DKI Jakarta Province, provincial minimum wages (“UMP”) has been enacted.
The 2017 UMP for DKI Jakarta Province is stipulated in Governor of DKI Jakarta Regulation No 227 of 2016 (“GR 227/2016”). GR 227/2016 stipulates the UMP for 2017 is of Rp 3.355.750,- per month. The amount of that UMP should take effect commencing 1 January 2017 and apply for every employee.
As for sectorial province UMP (“UMPSP”) will be regulated later. The stipulation for UMPSP will be regulated based on agreement between company association and labor/worker union for each of respective sectors.
Postponement and Sanction
Company that is unable to exercise the UMP provision, may submit a postponement to Governor of DKI Jakarta through Manpower and Transmigration Institution of DKI Jakarta Province. Postponement to perform the UMP provision shall be submitted at the latest of 21 December 2016.
Under Article 185 of Law Number 13 of 2003 on Manpower, anyone who violates the UMP provision without a postponement then shall be sanctioned with imprisonment for minimum of 1 year to maximum of 4 years and/or imposed confinement of minimum of Rp 10.000.000,- and maximum of Rp 400.000.000,-.
