News dalla rete ITA

25 Novembre 2022

Indonesia

NEW MINIMUM WAGE POLICY CAUSES CONTROVERSY

A new minimum wage regulation that offers significant pay rises to workers has elicited backlash fromfrom employers, who say the salary bump is out of keeping with next year’s bleak economic outlook. Manpower Minister Ida Fauziyah announced that Ministerial Regulation No. 18/2022 would introduce a new formula for calculating minimum wages for 2023. The minister authorized the regulation in response to a stalemate between labor and business over the issue of wage increases was delivered via a virtual press briefing on Saturday. In the absence of the new regulation, Government Regulation (PP) No. 36/2021, an implementing regulation of the 2020 Job Creation Law, would have served as the basis for setting such wages. Through the new ministerial regulation, the government caps the rate at which governors can hike minimum wages for next year at a maximum of 10 percent, and it gives governors, mayors and regents a few more days to announce the minimum wages for their respective regions. Under PP 36/2021, the announcements were due last Monday. Under the new formula, next year's minimum wage is the current year's minimum wage plus an adjustment value. (ICE GIACARTA)


Fonte notizia: Jakarta Post - November 24, 2022