Minimum wages only apply to workers with less than one year of service. For those who work longer than that, their wages should refer to the wage scale and structure applicable at workplace/factory level. On 30 December 2022 the Government of Indonesia issued Government Regulation in lieu of Job Creation Law (PERPU) No. 2/2022 – a PERPU is a temporary legal measure that needs to be confirmed by the Parliament to be effective. The enactment of this PERPU has revoked formally the Job Creation Law No. 11/2020. As long as it does not conflict with the PERPU, the derivative regulations of Job Creation Law are still valid.
PERPU No. 2/2022 has revised and restructured several articles on Minimum Wage originally regulated in Job Creation Law No. 11/2020 (PERPU No 2/2022 article 88 C, article 88 D and article 88 F): district and city minimum wages continue to be mandatory to be issued by the competent authorities; a new formula for minimum wage calculation has been introduced and authority has been given to the Government to determine other formula(s) of minimum wage in certain conditions.
Government will revise the Government Regulation No. 36/2021 to further regulate about the formula(s) for calculating the minimum wage.
