Thursday, October 3, 2024

Minimum Wage in 2025 Will Rise? Secretary of the Coordinating Ministry for Economic Affairs Leaks

Compiled by: Laila Ni'matul Munawaroh, English Literature Student, UNISSULA.


Menteri Koordinator Bidang Perekonomian Airlangga Hartarto saat konferensi pers 
di Kantor Kemenko Perekonomian, Jakarta, Kamis (3/10/2024). BALIPOST.COM


The government is discussing the possibility of a minimum wage increase for 2025. Coordinating Minister for the Economy Airlangga Hartarto said that the details of the 2025 minimum wage increase need to wait for data from the Central Statistics Agency (BPS).
“The UMP (provincial minimum wage) cycle is in November. So, we will wait for the results of the report from BPS first,” said Airlangga at the Coordinating Ministry for Economic Affairs Office, Jakarta, Thursday.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso also explained that the minimum wage discussion takes place every year in October-November. Currently, the government will determine the 2025 minimum wage.

Susiwijono said that the minimum wage calculation will still be carried out in accordance with Government Regulation (PP) Number 51 of 2023 concerning Amendments to PP 36/2021 concerning Wages. There are three variables that are the basis for calculating the minimum wage increase, namely inflation, economic growth, and certain indices, but it is not certain how much. What is clear is that the government wants the 2025 minimum wage determination not to cause any turmoil.
“We understand that there are regulations, PPs, everything, but also the reality is that we understand the needs of our fellow workers, laborers, so we will find a way out, how in terms of regulation, governance we can still comply, but on the other hand the real needs that are approximately needed to increase how much we can portray,” Susiwijono said at the Coordinating Ministry for Economic Affairs, Wednesday (2/10/2024).

Susiwijono also explained that Airlangga wants the government to discuss this wage increase comprehensively on existing regulations and the calculation of next year's minimum wage, especially to spur the economy and the interests of employers, workers, and the middle class.
“Because the government also needs middle-class workers to have purchasing power so that their spending is high. Economic growth is from here,” he said.

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