The 2023 Badung Minimum Wage (UMK) increase refers to the regulation created by the Minister of Manpower of the Republic of Indonesia stated in Number 18 of 2022 concerning the Determination of the 2023 Minimum Wage. The Badung district government in Bali announced that the minimum wage in 2023 will increase by 6.84% compared to 2022. This price increase brings Badung’s wage to IDR 3,163,837 in 2023, up from IDR 2,961,285 in 2022.
The decision was set by the Badung Wages Council on Wednesday, 30 November 2022, and was recommended by Badung Regent Nyoman Giri Prasta to become the Bali Governor’s Decision in 2023.
“All elements of Badung’s official sector should follow the 2023 regency minimum wage adjustments as the economic sector, especially the tourism industry, which is Badung’s primary sector, grows” Said Regent Giri Prasta.
If companies are not paying wages to the minimum wage standard set in 2023, Giri Prasta mentioned he would follow up and deploy a technical team on-site.
Meanwhile, the Head of the Badung Provincial Department of Industry and Labor, I Putu Eka Merthawan, added that monitoring and evaluation are being conducted to protect the rights of workers in the Badung district.
The Badung Regency Industry and Labor Service ranks, together with the Badung Regency Wages Council, are ready to oversee commitments in the form of step-by-step monitoring and evaluation of the primary sectors.#
Also Read: Bali Has Obstacle To Economic Recovery in 2023
How Is Minimum Wage Set?
UMP stands for “Upah Minimum Provinsi” or state minimum wage. Indonesia has 34 provinces. A province is the highest level of the local government sector in Indonesia. Each state sets its own UMK “Upah Minimum Kota/Kabupaten” or Regency Minimum Wage. Each province has its own regencies and Bali has 9.
UMP and UMK are typically calculated using formulas that use economic growth, inflation, and exponential variables. Using this formula, the wage increase in 2023 is 13%. Instead, the government capped the maximum minimum wage increase to 10%.
However, the Regency minimum wage should be equal to or higher than the state minimum wage (Bali). The minimum wage is based on a 40-hour work week and can be one of the following: 7 hours a day, 40 hours a week, 6 days a week, or 8 hours a day, 40 hours a week, 5 days a week. (Source; Law 13/2003 Article 77 Paragraph 2)
Penalties for Paying Less than Minimum Wage
Law of the Republic of Indonesia Number 13 of 2003 concerning Manpower. Article 90, Paragraph (1) Employers are prohibited from paying wages lower than the minimum wage. Along with, Article 185, Paragraph (1) Any person who violates the provisions referred to in Article 90 Paragraph (1) may be subject to imprisonment of a minimum of 1 (one) year and a maximum of four (4) years and/or a fine of at least 100,000,000 (one hundred million rupiahs) and at most 400,000,000 (four hundred million).
