Insider Stories - As many as 16 provinces in Indonesia have announced adjustment in the minimum wage (UMR) for 2014, according to data from the labor ministry.
Indonesia requires provinces to set their own monthly minimum wages, based on some key indicators, including inflation rate, economic growth, purchasing power and the descent living cost. The presidential instruction that regulates the matter says all provinces must announce the figure, at the latest on Nov. 1.
"This must be understood by all parties that the concept of the minimum wage should represent the lowest income a single worker with working period of less than a year, gets per month. UMR is just one social safety net," said Muhaimin Iskandar, the labor minister.
Other benefits for employment, he said, is suggested to be discussed directly between employers and the workers.
"The increase in the wage is one of the important aspect to improve the well-being of workers. However, this must also be responded with rising productivity, so that companies can keep on growing and add more new jobs," Muhaimin said.
The following table is the latest details on UMR adjustments:
Source: Labor Ministry
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