Bali Provincial Minimum Wage Defined Rp1.621.172

Provincial Minimum Wage (UMP) of Bali in 2015 has been set at Rp1.621.172 based on the study refers to number of indicators as well as the principle of mutual benefit. “The UMP has been adjusted, even bigger than the average of living needs in 2014 which is Rp1.524.872,” said the Head of Bali Provincial Secretariat of Public Relations I Dewa Gede Mahendra Putra, through coordination with Head of Department of Labor in Bali I Gusti Agung Sudarsana in Denpasar on Tuesday.

He said that the increase in minimum wage is pegged only 5.5 percent from the previous year. The increase is based on the fact that in 2014 many small businesses pay wages below the minimum wage. In determining minimum wage there are at least six indicators used. Among them are the rate of inflation, rate of economic growth / productivity of labor and the unemployment rate. “The ability of small businesses to pay wages and compatibility with the surrounding area is also an important consideration in determining the minimum wage,” he said.

Mahendra add some data to the reference wages in Bali in 2015, covering an average of 2014 KHL (Standard Cost of Living) Bali Rp1.524.872, the inflation rate reached 5.2 percent and the unemployment rate of eight percent. Data in 2014 showed poor ability of small businesses to pay wages to meet the standards of the minimum wage. In Klungkung and Bangli, companies that pay wages below the minimum wage reach 70 percent.

The high case also occurs in Buleleng and Jembrana, which amounted to 65 percent and 60 percent. Furthermore, Badung and Denpasar City is 30 percent, 24 percent in Gianyar, 20 percent in Tabanan and 16 percent in Karangasem Dewa Mahendra explained that the fact become the basis for the determination in 2015. The minimum wage of nearby areas are taken into consideration that is West Nusa Tenggara in 2014 that is Rp1.290.000 and Banyuwangi, East Java that is Rp1,250,000.

He realized the increase of minimum wage in 2015 was not as large as the previous two years. Where, 2012-2013 UMP rose of 21.7 percent (Rp970.000 became Rp1.181.000) as well as the increase in 2013-2014 was 30.6 per cent (Rp1.181.000 became Rp1.524.872). “Thus, the increase of the minimum wage in Bali for the last two years is very significant, reaching 53.3 per cent,” he said.

For 2015, the increase was not as fantastic as the previous two years due to the fact that the majority of micro and small businesses could not afford to pay the wages of labor to be equal to or above the minimum wage. He expected that it will be followed by the establishment of Sectoral Minimum Wage in regencies/city or minimum wage on the tourism sector, trade and other services.

source : the bali times

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