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Workers’ Wage Increase

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· 3 minutes read
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A worker is seen at the car assembly plant of PT Gaya Motor in Sunter, North Jakarta, on Thursday (6/9/2018).

Minimum wage will automatically increase in 2019. This will lead to higher incomes and purchasing power but it is not without its consequences.

A manpower ministerial circular dated Oct. 15 stipulates that the increase will cover national inflation and economic growth. This will amount to 8.03 percent in 2019, comprising 2018’s inflation of 2.88 percent and economic growth of 5.15 percent. The increase occurs automatically every year as a result of a tripartite agreement.

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