2020 Banten Provincial and Municipal Minimum Wages

Banten Province stipulates the 2020 Provincial Minimum Wage (Upah Minimum Provinsi/UMP) of IRD 2,460,996.54  per month (US$170) in the Decree of the Governor of Banten Number 561/ Kep.305-Huk/2019. The amount of the UMP is in accordance with the increase in the UMP determined by the Ministry of Manpower which amounted to 8.51%. The Governor of Banten also stipulates the 2020 Municipal Minimum Wage (Upah Minimum Kabupaten/Kota or UMK). Based on the attachment of the Banten Governor’s Decree Number: 561/Kep.320-Huk/2019 dated November 19, 2019, the UMK of 8 Regencies/ Cities of Banten are as follow:

1. Serang Regency IDR 4,152,887.55 (US$ 286.41)

2. City of Cilegon IDR 4,246,081.42 (US$ 292.83)

3. Tangerang  Selatan City IDR 4,168,268.62 (US$ 287.47)

4. Pandeglang Regency IDR 2,758,909.00 (US$ 190.27)

5. Lebak Regency IDR 2,710,654.00 (US$ 186.94)

6. Serang  City IDR 3,773,940.00 (US$ 260.27)

7. Tangerang Regency IDR 4,168,268.62 (US$ 287.47)

8. Tangerang City IDR 4,119,029.92 (US$ 284.47)

2020 Jawa Barat Provincial and Municipal Minimum Wages Issue

On 1 November 2019, the Governor of Jawa Barat (West Java) issued Decision Letter SK Gubernur Nomor 561/Kep.1046-Yanbangsos/2018 stipulating the 2020 Provincial Minimum Wage (Upah Minimum Provinsi/UMP)  of Jawa Barat province amount of  IDR 1,810,351.36 per month (US$ 125). The calculation of the 2020 UMP is based on national inflation and national economic growth (Gross Domestic Product growth) data as per the Indonesian Central Statistics Agency (BPS RI). As reported, the national inflation rate is 3.39% and GDP growth is 5.12% making the total increment rate in 2020 to 8.51%.

In theory, UMP is used as the floor wage refer by District/City Wage Council when setting UMK. However, as it has been accustomed that municipalities in Jawa Barat issue or recommend the issuance of district/city minimum wage (Upah Minimum Kabupaten/Kota or UMK), the lowest wage floor for the next year UMK is the current year UMK. Thus, in Jawa Barat case UMP is applicable in district/city where UMK is not set by the respective Wage Council.

Once Wage Council sets next year minimum wage, the head of municipality (either Mayor or Regent) would provide recommendation to Governor to be confirmed. Generally, Governor will issue either Governor Regulation or Governor Decision. This is due to Act No. 12 of 2011 concerning Formation Statutory Regulations, Provincial Regulations and Regency/City Regulations are classified and identified in the Indonesia legislative hierarchy. So that the legal force of a Decree or Governor Regulation such as Decision or Regulation of UMK is binding.

This year, however, the Jawa Barat Governor stipulate the 2020 UMK in a Circular Letter (Surat Edaran/SE). Circular Letter in Indonesia is conceptualized as merely clarifying or giving instructions on how to carry out certain things that are considered important and urgent that do not yet exist or the rules as primary source of positive law in Indonesia remains unclear. Despite of this, in substance Circular Lettera should not oppose superior laws or regulations. If there is a conflict between the Circular Letters and Law & Regulations, the superior Laws and Regulations take precedence.

Circular Letters are only policy rules from Administrative officials, such as Minister or Governors, instead of legal products. It is only played a role of internal instruction and recommendations. Thus, there is no legal consequence for not complying with Circular Letters. In other words, the legal consequences the 2020 UMP likely take precedence over the 2020 UMK.

As reference, same as the UMP, the 2020 increment of district/city minimum wage in Jawa Barat follows the set formula (national inflation rate + GDP growth). The specific amount of each district/city could be found in the attachment below.

SE UMK JaBar 2020

 

News Flash 1/11/2019: 2020 Provincial Minimum Wage Increment Rate

The Ministry of Manpower (Kemnaker) decided to raise the Provincial Minimum Wage (UMP) in 2020 by 8.51 percent in accordance with the Circular Letter (SE) of the Minister of Manpower Number BM/308/ HI.01.00/X/2019 dated October 15, 2019 concerning Submission of National Data on Inflation and Gross Domestic Product Growth in 2019. In the circular also mentioned, the figure of 8.51 percent is based on the Central Statistics Agency data on national inflation and national economic growth in 2019.

Looking at the consistency of the provincial minimum wage increment in the last two years, it can be expected that all provinces in Indonesia will follow the Circular.

SE Menaker No BM_308_ HI.01.00_X_2019

Jawa Barat’s 2019 Sector-based and Special Minimum Wages

In Jawa Barat province of Indonesia, in addition to provincial minimum wages, municipal minimum wages and sector-based minimum wages; there are several other types of minimum wages that are not regulated in the concept of minimum wage regulations both in the Manpower Act, Government Regulations and Minister of Manpower Decrees. These wages are known as government discretionary wages, which began to issue in 2017. Apart from not being clearly regulated in labor regulations, decisions on government discretionary wages often do not follow the minimum wage ratification rules that are usually issued at the end of the year for the following year (Regency of Bogor’s special minimum wages for textile and textile products companies – May 2019). However, in areas where government discretionary wages have been previously issued, the time of ratification of such wages may follow the time of ratification of other regular minimum wages, namely at the end of a year for following year (Regency of Purwakarta -December 2018). Regular sector-based minimum wages could also be issued late in a running year and declared effective since January 1 of that year (Regency of Karawang – September 2019).

KepGub 561 Kep 770 Yanbangsos 2019 ttg UMS Kab Karawang Thn 2019

UMK Padat Karya Purwakarta 2019

UMK-Perusahaan-Tekstil-dan-Produk-Tekstil-di-Daerah-Kabupaten-Bogor-Tahun-2019

What’s new in the recently released Minister of Manpower Regulation No. 5 of 2018 on Occupational Safety and Health?

Signed on 27 April 2018, the Minister of Manpower No. 5 of 2018 concerning Occupational Safety and Health at Work Environment revokes the Regulation of the Minister of Labor No. 7 of 1964 concerning Terms of Health, Hygiene, and Lighting in the workplace, the Minister of Manpower and Transmigration Regulation No. 13 of 2011 concerning Threshold Value Limits of Physical Factors and Chemical Factors in the Workplace, and the Circular of the Minister of Manpower and Transmigration number SE.01 /MEN/ 1978 concerning Threshold Values ​​for Work Climate and Threshold Limit Values ​​for Noise in the Workplace.

Perceive as a more comprehensive regulation compare to the previous regulations on Occupational Safety and Health, the Minister of Manpower Regulation number 5 of 2018 aims for a healthier and safer work environment. It also comprises of 10 new focuses as follow:

  1. Ergonomics factors are factors that can affect workforce activities due to inconsistency between work facilities which include work methods, work position, work tools, and heavy lifting. Ergonomics factors are explained in details in the Appendix of the respective regulation.
  2. Psychological factors are factors that influence workforce activities due to interpersonal relationships in the workplace, and work roles and responsibilities. Measurement of psychological factors in the workplace uses a 7 scales survey method. The survey includes the purpose of work assignments, time for meetings that are not important, complex tasks done and many others.
  3. Cold working climate standards. Cold pressure is heat dissipation due to continuous exposure to cold temperature that affects human body ability to produce heat resulting in hypothermia (body temperature below 36 degrees Celsius). The standard of cold working climate includes a standard table where there are cold temperatures, wind speed, actual perceived temperature and danger level. The cold working climate standard also stipulates that rest/break after 4 hour of work shift.
  4. Work Environment, Occupational Safety and Health are all activities to guarantee and protect the safety and health of workers by controlling work Environment and the application of the workplace sanitation hygiene.
  5. Industrial Hygiene Expert is a person who has required competence including knowledge, skills and attitudes in the field of Industrial Hygiene which has the qualifications of a Young Industrial Hygiene Expert (HIMU), Associate Expert in Industrial Hygiene (HIMA), and a Main Expert in Industrial Hygiene (HIU).
  6. Testing methods. The Minister of Manpower Regulation No. 5 of 2018 requires measurement using testing method established by the Indonesian National Standards as mentioned in Article 6. In the case that the test method has not been established in the Indonesian National Standard, measurements can be carried out by other test methods in accordance with standards validated by the authorized institution.
  7. Application of workplace hygiene and sanitation. The Minister of Manpower Regulation No. 5/2018 replaces the Minister of Labor Regulation Number 7 of 1964 concerning Health, Hygiene and Lighting Conditions in the Workplace. The new regulation stipulates building hygiene and sanitation including the obligation to repaint walls and ceilings at least once every 5 years, the number of latrines increases by 1 in multiples of 40, and the number and requirements of latrines for construction or temporary workplace. In addition there are also requirements for waste disposal including sanitary napkins. These are not ordered by the previous OSH regulations.
  8. OSH Inspection and testing can be done internally or involving external institutions. Internally, OSH inspection and testing must be carried out by qualified OSH Personnel in the field of work environment. Externally, it can be done by various accredited institutions appointed by the Minister of Manpower.
  9. Inspecting and testing reports as per the standard template and should be distributed in the company.
  10. “Fail to meet OSH requirements” sticker, a warning sticker issued by the Ministry of Manpower given to a work area that fails to meet OSH requirements based on inspection and testing.

permenaker no. 5 tahun 2018 tentang k3