Industry sector minimum wage (UMSP/UMSK) is the lowest wage which applies in certain sector of industry, either in a province or district/city. UMSP/UMSK is determined by Governor (head of provincial government) base on agreement between employers organization and trade union/s in the concerned sector.
Article 11 paragraph (3) Minister of Manpower and Transmigration Regulation No.7 of 2013 concerning Minimum Wages stipulates that provincial sector minimum Wage (UMSP) must not be lower than provincial minimum wage (UMP). Also, municipal sector minimum wage (UMSK) must not be lower than municipal minimum wage (UMK). Moreover, Article 18 paragraph (1) stipulates if a company covers more than one industry sector, the applicable minimum wage is either UMSP or UMSK.
Although the UMSP / UMSK is effective from January 1, it is very common that the Governor’s Decree on UMSP / UMSK is issued around March-July every year. In addition, there is no certainty that an industry sector where sector minimum wage applies this year would also have a sector minimum wage in the following year because it solely depends on agreements between employers’ organizations and trade union/s. This likely causes uncertainty in the calculation of company budgets.
Below file consists of the 2017 (industry) sector minimum wage figures of several provinces and districts/cities.