B&A News Brief – Regional Minimum Wages in Indonesia for 2014

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As 2014 is approaching, every employers need to be aware of the regional minimum wages for 2014. Below is the regional minimum wages in some regions in Indonesia for 2014.

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The abovementioned minimum wages are only applicable for employees who work for less than one (1) year. And for employer who cannot afford to implement the provision of regional minimum wage, it is possible to request for postponement of the implementation of the minimum wage. The procedure of the postponement is regulated under the Decree of Minister of Manpower and Transmigration No. KEP.231/MEN/2003 dated 31 October 2003.
A request for postponement must be submitted by the employer to the Governor via the local Manpower office at least 10 days prior to the effective date of the minimum wage. Such request however must be agreed by the empoyees or the Labor Union. If considered necessary, the Governor, may request a Public Accountant to examine and ensure company’s financial condition.
After having heard the recommendation from the Provincial of Remuneration Board (Dewan Pengupahan). the Governor will thereafter reject or approve the request for postponement.

The postponement may be granted by way of the following methods:

– Employer shall pay the minimum wages based on the past minimum wages;

– Employer shall pay minimum wages higher than the past minimum wages, but lower than the new minimum wages;

– Employer shall increase the minimum wages gradually.

The approval for postponement may be granted for a maximum period of 12 months.
Pending the Governor’s decision, the company must continue to pay employee’s salaries in the amount which usually received by the employees.

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For further information, please contact: [email protected]

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