Discover key changes in Indonesian labour law following the Constitutional Court's October 2024 ruling. Learn how to stay compliant with hiring, contracts, and outsourcing.
According to the Indonesian Ministry of Labour, no worker in Indonesia can be paid less than the mandatory minimum rate of pay. Should an employer fail to comply with this regulation, the Indonesian government may apply the corresponding punishment, which can be:
Minimum Wage refers to the lowest amount of money a worker can be paid for his work under the law. In most cases, countries follow a nation-wide minimum wage, that is, all workers in the country, no matter the region they are in, have the right to the same minimum wage. Nonetheless, Indonesia’s system is set depending on the province, district, and the sector/industry.
Levels of minimum wage are currently regulated and monitored by Government Resolution No.78/2015, which guarantees annual increases in the minimum rate, taking into account inflation and GDP rates. Then, following this data, each province and district will determine the minimum wage in their respective area.
The minimum wage is based on 40 hours of work per week and can either be:
The official minimum wage in Indonesia for the year 2023 ranges from IDR 1,981,782 (monthly) in Yogyakarta, to IDR 4,901,798 (monthly) in Jakarta.
As for Bali, the minimum wage for 2023 is determined by the Bali Governor's Decree No. 869/03-M/HK/2022. There is a total of 9 regencies in Bali with different minimum salaries, as follows:
| Regency | Minimum Wage 2023 |
| Badung Regency | IDR 3,163,837 |
| Denpasar City | IDR 2,994,646 |
| Gianyar Regency | IDR 2,837,680 |
| Tabanan Regency | IDR 2,824,613 |
| Jembrana Regency | IDR 2,738,698 |
| Karangasem Regency | IDR 2,730,264 |
| Buleleng Regency | IDR 2,716,206 |
| Klungkung Regency | IDR 2,714,642 |
| Bangli Regency | IDR 2,713,672 |
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Discover key changes in Indonesian labour law following the Constitutional Court's October 2024 ruling. Learn how to stay compliant with hiring, contracts, and outsourcing.
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