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View all search resultsBusinesses have urged the government to stick to the formula set out under Government Regulation No. 51/2023, which ties wage adjustments to regional economic growth, inflation and an index capturing local productivity and business capacity.
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.
The ministry has instituted a new wage of Rp 700,000 for inmates participating in work and empowerment programs, just above the urban poverty rate and a massive increase compared to the previous rate of Rp 50,000-100,000.
The government’s announcement last week that it will increase the minimum wage by 6.5 percent next year has been met with quiet acquiescence, with some labor groups still mulling plans to call off nationwide strikes and employers concerned with the impending impact on overhead costs and competitiveness.
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