Jakarta Minimum Wage Set to Rise 3.6% in 2024

TEMPO.CO, Jakarta – Acting Governor of Jakarta Heru Budi Hartono officially announced the 2024 provincial minimum wage (UMP) for Jakarta. According to Heru, Jakarta’s 2024 minimum wage is now Rp5,067,381, or a 3.6 percent increase from this year’s minimum wage.

The increase in the minimum wage is based on the regulated formula set in Government Regulation (PP) No. 51 of 2023 concerning the amendment of PP No. 36 of 2021 on Wages.

“The highest alfa 0.30 was in accordance with PP No. 51 of 2023. The provincial government is not allowed to derogate the provisions set by the central government,” said Heru Budi in Jakarta City Hall today, Tuesday, Nov. 21.

Heru Budi did not exercise his discretionary power to decide the 2024 UMP for Jakarta.

Earlier, the Jakarta Manpower, Transmigration, and Energy Office along with the Wages Council convened to discuss the minimum wage in Jakarta last week on Friday.

The meeting resulted in three recommendations to be proposed to Heru Budi. These recommendations include:

1. The members of the Jakarta Wages Council from the entrepreneur organizations element proposed 2024 UMP of Rp5,043,068 derived from the calculations of alfa 0.20 from local economic growth.

2. The members of the Jakarta Wages Council from the worker’s union element proposed a 15 percent rise in UMP, amounting to Rp5,637,068. It calculated the inflation (1.89 percent), the economic growth (4.90 percent), and the particular index (8.15 percent).

3. The members of the Jakarta Wages Council from the government element proposed Rp5,067,381 for 2024 UMP, calculated with alfa 0.30 from local economic growth. 


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