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undreds of companies in Malang regency have yet to pay their workers based on the new minimum wage as required under the 2009 regency/municipal minimum wage scheme (UMK) set out by the provincial administration of Rp 954,500 (US$87) per month, an official said Tuesday.

Malang Manpower and Transmigration Agency head Jaka Ritamtama said as many as 482, or around 60 percent of the 804 companies operating in the regency, still paid their workers based on the 2008 UMK of Rp 802,000 per month.

"They're still paying their workers according to last year's UMK, but have not submitted a request to postpone paying workers' wages in accordance with the current wage scheme," Jaka told reporters.

The agency revealed its findings following spot checks of companies that took place after the 2009 UMK was put into effect.

Jaka added the companies were in violation of a 2003 manpower law because of their refusal to comply with the 2009 UMK.

Available data showed only 11 of the 804 companies in Malang regency had officially applied to the provincial administration for a request to postpone implementing the 2009 UMK.

Most of the companies, which claimed they could not afford to pay their workers according to the new minimum wage, were cigarette manufacturers, who cited rising prices of raw materials, the global financial crisis and increased cigarette taxes for their request.

When asked whether the hundreds of violating companies would be punished, Jaka said it was likely, but given the current economic situation, he said he preferred not to enforce stiff sanctions.

He added violating companies would not be directly punished, but would be summoned beforehand. Workers would also be invited to sit together and discuss the salaries they would receive.

"The government is responsible for providing guidance, to prevent layoffs. We have to be engaged in such discussions to prevent layoffs, on the grounds that the companies cannot afford to pay workers' salaries," he said.

Jaka added the employers could be considered in violation of the law, but before taking measures, three warnings must be issued as part of the guidance steps.

"The aim of law enforcement is to implement the law, but there are other objectives, such as counseling through dialogue to seek a solution so as not to implement stiff penalties, such as enforcing punishments immediately upon violation," he said.

"All the companies would likely close if harsh methods are put into practice."