Minimum Wage Garment

Minimum Wage 2020 for Garment Sector

Indonesia Provincial and Regencies Minimum Wage 2020

In accordance with labour regulations concerning wages, Governor of each province shall stipulate Provincial Minimum Wage. 34 provinces in Indonesia have established Provincial Minimum Wage in 2020. The increase of Provincial Minimum Wage in 2020 is 8.51 percent. It is calculated according to the formula stipulated in Government Regulation (GR) No. 78/2015 on Wages.

Brief information on setting up Minimum Wages in Indonesia:

1. Minimum Wage is the lowest monthly wage consisting of basic wage including fixed allowance.

2. Minimum Wage only applies to: 

  • Single worker
  • Workers who have a working period of 0 years up to 1 year 
  • Workers with permanent, contract employment status and/or in probation period

3. For workers who are married, and/or have more than 1 year working period, employers are obliged to apply the pay scale structure and shall be regulated in the applicable working conditions of the company.

4. Provincial Minimum Wage only applies Regency/City Minimum Wage is not established.

5. According to article 44 paragraph (1) and (2) GR 78 year 2015, Provincial, Regency/City Minimum Wage setting in 2017 is using minimum wage calculation formula, which is:

New minimum wage = current minimum wage + (current minimum wage x (Inflation + % GDP annual increase during the year))

6. Employer is prohibited to pay lower wages than Provincial Minimum Wage.

7. Employers who pay higher wages than Provincial Minimum Wage are prohibited in following years to reduce or pay lower wages than wages that are already established within the company.

8. For employer who can not afford to pay the minimum wage, employer may submit a written application for a suspension of the implementation of the Provincial Minimum Wage to the Governor through the Head of Service Office of Manpower and Transmigration.

9. Labour Inspector will do supervision over the implementation of Provincial Minimum Wage in accordance with prevailing laws and regulations.

The following is the list of Provincial and Regency/City Minimum Wage 2020 which are applicable in 34 Provinces across Indonesia:

  1. Nanggroe Aceh Darussalam
  2. North Sumatera
  3. West Sumatera
  4. Riau
  5. Riau Islands
  6. Jambi 
  7. South Sumatera
  8. Bangka Belitung 
  9. Bengkulu
  10. Lampung 
  11. West Java 
  12. DKI Jakarta
  13. Banten
  14. Central Java
  15. DI Yogyakarta
  16. East Java
  17. Bali 
  18. West Nusa Tenggara
  19. East Nusa Tenggara
  20. West Kalimantan
  21. South Kalimantan
  22. Central Kalimantan
  23. East Kalimantan
  24. North Kalimantan
  25. Maluku
  26. North Maluku
  27. Gorontalo
  28. North Sulawesi
  29. South-east Sulawesi
  30. Central Sulawesi
  31. South Sulawesi
  32. West Sulawesi
  33. Papua
  34. West Papua