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View all search resultsGovt, some unions want to narrow regional wage disparities
National and regional wage councils are set to play a central role in shaping the formula used to determine minimum wages for next year, unlike last year, when the President himself decided how much wages should rise.
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Workers participate in a rally in front of the Senayan Legislative Complex in Central Jakarta on Aug. 28, 2025. (Antara/Rivan Awal Lingga)
T
he government aims to reduce income disparities across the country through a regulation on the 2026 minimum wage, which is set to be issued on Nov. 21, before regional administrations are to announce their respective minimum wages a week later.
“We’re currently finalizing the regulation. It will be out as soon as possible, before the provincial wage announcements,” Manpower Minister Yassierli told reporters in a media briefing on Thursday.
The main concern would be reducing differences in minimum pay among districts and cities, he said.
Read also: Labor demands up to 10% rise in minimum wage for 2026
He noted that the formula used as a guideline for minimum wage levels, to be outlined in the upcoming ministerial regulation, could differ from previous years, as the government sought to ensure fairer distribution and decent living standards for workers.
The 2026 wage policy would be guided by two main considerations, the minister said, namely meeting decent living standards and complying with last year’s Constitutional Court ruling that wage changes reflect inflation, economic growth and an adjustment index.
He added that the national and regional wage councils would play a central role in shaping the formula, in line with the court’s mandate.
