BANDUNG - The West Java Provincial Government set the West Java Provincial Minimum Wage (UMP) in 2020 to Rp 1,810,351.36 or an increase of Rp 141,978.53 from last year and will take effect on January 1, 2020.
Acting Regional Secretary of West Java Province, Daud Achmad said, the establishment of the UMP was in accordance with Law No. 13 of 2003 concerning Labor and Government Regulation No. 78 of 2015 concerning Wages.
"In accordance with the existing rules, every November 1 the Governor is obliged to determine and announce the UMP," said Daud, in West Java's Got Information (JAPRI) activity at Gedung Sate, Friday (01/11) afternoon.
According to Daud, the determination of the UMP by the Governor of West Java was carried out after going through a process in the Wage Board as well as discussions with the Governor and also based on a letter from the Minister of Manpower stating there was an inflation rate of 3.39 percent and Gross Domestic Product growth of 5.12 percent, so UMP increase in 2020 is set at Rp.1,810,351.36 or up 8.51 percent.
"Surely this determination has been through a process in accordance with laws and regulations and discussed through discussions with relevant parties," he said.
Daud hopes, with the establishment of the West Java UMP, the Regents and Mayors to be able to encourage companies and workers to be able to build bipartite and companies open space for discussion between employers and workers so that a fair wage will emerge.
"Equitable wages mean that the increase in wages is for the welfare of the workers, while workers can also be enthusiastic about how to improve their welfare not to create a financial crisis in the company, so this dialogue must be opened," he explained.
UMP 2020 increase is calculated based on the formula, namely UMP 2019 of Rp. 1,668,372.83 plus inflation and GDP (Rp. 1,668,372.83 x (3.39% + 5.12%) or Rp. 1,668,372.83 + Rp. 141,978 , 53, which is equal to Rp 1,810,351.36.