2017 Jakarta Minimum Wage

The Governor of the Special Capital City Region of Jakarta (“Governor”) has determined the 2017 provincial minimum wage for Jakarta through the issuance of Regulation No. 227 of 2016 (“Regulation 227/2016”).Regulation 227/2016 is aiming to increase workers’ salaries for the Jakarta area, in line with Letter No. 1/Depeprov/X/2016 on Recommendation for the 2017 Provincial Minimum Wage (dated 26 October 2016) which was filed by the Provincial Wage Council for Jakarta. [1] Prior to the issuance of Regulation 227/2016, this same matter was regulated under Governor Regulation No. 230 of 2015 on the 2016 Provincial Minimum Wage in Jakarta (“Regulation 230/2015”).2017 Provincial Minimum Wage for JakartaRegulation 227/2016 sets a minimum wage for Jakarta of IDR 3,355,750 per month. This figure represents a IDR 255,750 or an 8.25% increase over the 2016 provincial minimum wage, which was set at IDR 3,100,000. [2] All companies located in Jakarta are prohibited from paying their workers any less than this prescribed minimum wage, and this includes any workers who are hired for less than a period of a year. Companies may, however, submit an application to postpone the implementation of Regulation 227/2016 within their company if they are temporarily unable to meet the minimum-wage obligation. Such applications must be submitted to the Governor no later than 10 days before the 2017 provincial minimum wage comes into force on 1 January 2017 (i.e. by 22 December 2016). [3] Details of provincial minimum-wage levels for Jakarta over the last seven years are set out in the following table: