The Medan administration has set the city's 2013 minimum wage at Rp 1.46 million (US$152), 6 percent higher than North Sumatra's minimum wage of Rp 1.37 million.
Medan mayor Rahudman Harahap said on Monday that the amount had been decided in accordance with the proposal of Medan Remuneration Board.
“The administration, Indonesian Employers Association (Apindo) and the labor unions have also approved the number,” he said.
Apindo Medan chapter chairman Syamsul Bahri Batubara said the number was accordance with every party's interest and based on a survey of the basic cost of living.
According to Rahudman, the wage was only for workers who have worked for less than one year.
“We will set different level for workers who have worked for more than one year,” he said.
Rahudman said the wage for those who work in the informal sectors would also increase up to 10 percent, following the increase of the minimum wage. (cor/swd)