2019 Jakarta Minimum Wage

The Governor of the Special Capital City Region of Jakarta (“ Governor ”) has determined the 2019 provincial minimum wage for Jakarta through the issuance of Regulation of the Governor (“ Regulation 114/2018 ”).Regulation 114/2018 is aiming to increase the salaries of workers in the Jakarta area, in line with Letter No. 1/Depeprov/X/2018 on Recommendations for the 2019 Provincial Minimum Wage (dated 24 October 2018) which was filed by the Provincial Wage Council for Jakarta. [1] Prior to the issuance of Regulation 114/2018, this same matter was regulated under Regulation of the Governor on the 2018 Provincial Minimum Wage for Jakarta (“ Regulation 182/2017 ”).The 2019 Provincial Minimum Wage for JakartaRegulation 114/2018 sets a minimum wage for Jakarta of IDR 3,940,973 per month. This figure represents an IDR 292,938 (8,03%) increase over the 2018 provincial minimum wage, which was set at IDR 3,648,035. [2] All companies located in Jakarta are prohibited from paying their workers less than this prescribed minimum wage, and this includes any workers who are hired for periods of less than a year. Companies may, however, submit applications for the postponement of the implementation of Regulation 114/2018 to the Governor if they are temporarily unable to meet the minimum-wage obligation. Such applications must be submitted to the Governor by no later than 10 days prior to the 2019 provincial minimum wage coming into effect on 1 January 2019 (i.e., by 22 December 2018). [3] Details of the provincial minimum-wage levels for Jakarta over the last eight years are set out in the following table: