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View all search resultsLabor demands up to 10% rise in minimum wage for 2026
The stipulation for determining the provincial minimum wage is usually made on Nov. 1, and Dec. 1 for regencies or cities.
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Workers participate on a rally on Aug. 28 in front of the Senayan legislative complex in Central Jakarta. During the protest, laborers demand a revision to the labor regulations and ways to ensure better work protection across the country. (Antara/Rivan Awal Lingga)
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major labor coalition is demanding an 8.5 to 10 percent increase in the minimum wage for next year, higher than the 6.5 percent hike set by President Prabowo Subianto for this year.
The Coalition of Trade Unions and the Labor Party (KSP-PB) stated that the union’s demand is based on Constitutional Court Decision No. 168/2023, issued last year. The landmark ruling emphasizes that wage determination must account for the necessity of a decent living.
“We are basing this on the Constitutional Court’s (MK) decision, which states that a minimum wage increase must consider the need for a decent living, using a formula that takes into account inflation, economic growth and certain indices,” Labor Party president Said Iqbal said during an online press conference on Monday, as reported by Kompas.com.
He explained that the inflation rate over the past 12 months was between 3 and 3.26 percent, while the economy grew by 5.2 percent during the same period. Furthermore, he argued that the specific index should increase from 0.9 to 1 percent due to the government’s claim of reduced poverty and unemployment.
“So, by adding 5.2 percent [economic growth] and 3.26 percent [inflation], we get 8.46 percent, rounded up to 8.5 percent. This is in line with the MK ruling,” he said.
Read also: Employed and exhausted, the silent struggle of the working majority
Manpower Minister Yassierly confirmed that the government is currently developing the concept and conducting a study for the planned wage hike next year, noting that discussions with various stakeholders are ongoing.
