PORTALJABAR, BANDUNG CITY - Acting Governor Bey Machmudin said that the West Java Provincial Government will immediately discuss the 2024 Provincial Minimum Wage (UMP) with the Wage Council no later than November 17 2023.

"The determination of the amount (UMP) with the Wage Council will be held at a meeting starting November 17 2023," said Bey Machmudin at Gedung Sate Bandung, Tuesday (14/11/2023).

Bey explained that the determination of wage rates in West Java is determined based on new regulations, namely Government Regulation Number 51 of 2023 concerning Amendments to Government Regulation Number 36/2021 concerning Wages.

"The new formula for calculating the minimum wage includes three variables, namely inflation, economic growth and a certain index which is symbolized in alpha form," said Bey.

This particular index describes the contribution of labor to economic growth with a certain value in the range of 0.1 to 0.3. Determining the alpha value must consider productivity and expansion of employment opportunities.

"The expected formula is an alpha of 0.1 to 0.3," said Bey.

According to Bey, the new UMP formula based on PP No. 51 of 2023 provides certainty that the minimum wage will increase every year. The new PP is also expected to prevent disparities or wage gaps between regions.

"The UMP is determined by the Governor no later than November 21, which will become a guideline for district/city regional governments together with their respective Wage Councils to determine the UMK (city/district minimum wage)," he explained.

The UMK must be announced no later than 30 November 2023 and take effect on 1 January 2024, which must be complied with by all entrepreneurs.