Bali Increases Its Minimum Wage by 0.92%

TheIndonesia.id - The Bali Provincial Government announced the 2022 Monthly Minimum Wage (UMP) on Thursday (November 18, 2021). UMP is the lowest amount workers can be legally paid for their work.

Indonesia's minimum wage is established by provincial and regional authorities, which vary by province, region, and district. Recently, Bali announced the UMP of 2022. From January, the minimum wage will increase by 0.92 percent or IDR 22,971 (US$ 1,61).

In 2021, the minimum wage of Bali was set at IDR 2,494,000 (US$ 175,14). It will rise in 2022 to IDR 2,516,971 (US$ 176,75). It was decided on the Governor's decree Number 779/03-M/HK/2021 on November 18, 2021.

"It has been announced that there is an increase of IDR 22,971 (US$ 1,61) in 2022," said Bali's Head of the Department of Manpower (Kadisnaker), Ida Bagus Ngurah Arda, to SuaraBali.id on Friday (November 19, 2021).

He said that the increase is still below the average compared to the nation's minimum wage increase that reaches 1.09 percent. Bali's economic condition has slumped due to the Covid-19 pandemic.

"Thankfully, we could increase the minimum wage because compared to the other 34 provinces in Indonesia, the economic growth of Bali is the lowest," he said.

He said the UMP was decided by an agreement among employers, workers, and the government. Then, the authority calculated it based on the formula determined by the central government.

"We will communicate the results of the discussion to the Governor. The calculations are certainly based on the formula given by the central government," he said.

However, the minimum wage of each regency in Bali is still discussed by the wage council. The Bali minimum wage will be the reference for each region to determine their regional minimum wage.

"As a reference, each region can't set its minimum wage more than Bali's minimum wage, IDR 2,516,971 (US$ 176,75).