Yogyakarta Announces UMP 2025, Up 6.5 Percent to Rp2.264 Million
Yogyakarta Workers to See 6.5% UMP Increase in 2025
Yogyakarta, Indonesia – Workers in Yogyakarta will see a 6.5% increase in their minimum wage next year, bringing the new provincial minimum wage (UMP) to Rp2,264,080.95. The proclamation was made by Yogyakarta’s Secretary of State, Beny Suharsono, on Wednesday, December 11, 2024.
This increase, outlined in Governor’s Decision No. 477/KEP/2024, follows the guidelines set by the Ministry of Manpower’s Regulation no.16 of 2024 regarding minimum wage determination. The decision was reached after careful consideration by the Yogyakarta Wage Council, a body comprising representatives from labor unions, employers, the government, and academics.
“The 2025 minimum wage is set at Rp2,264,080.95, reflecting a 6.5% increase from the 2024 UMP,” stated Suharsono. This translates to an additional Rp138,183.34 for minimum wage earners in the province.
In addition to the general UMP increase, Yogyakarta has also established sector-specific minimum wages for industries with unique characteristics, such as higher risk levels, demanding workloads, or specialized skills. These sector-specific minimum wages are detailed in Governor’s decision No. 478/KEP/2024.
Four sectors in Yogyakarta will benefit from these tailored minimum wages: accommodation and food services, finance and insurance, information and communication, and construction.The highest sector-specific minimum wage is set for the accommodation and food services sector at Rp2,311,913.65, representing an 8.5% increase.The construction sector follows closely with a minimum wage of Rp2,285,339.93, reflecting a 7.5% increase.
“the lowest sector-specific minimum wage is in the construction sector at Rp2,285,339.93, or a 7.5% increase,” Suharsono added.
The finance and insurance sector will see an 8.35% increase in its minimum wage.
All these policies are in line with the Ministry of Manpower’s regulations and take into account the specific nature of work within each sector.
[Video: Local news report on the UMP announcement in Yogyakarta]
Yogyakarta Workers Celebrate 6.5% UMP Hike in 2025
We sat down with Dr. Anya Lestari, an economist specializing in labor market dynamics, to discuss the implications of the recent minimum wage increase proclamation in Yogyakarta.
NewsDirectory3: Dr.Lestari, the minimum wage in yogyakarta is set to rise by 6.5% in 2025. What are your initial thoughts on this increase?
Dr. Lestari: This is a welcome advancement for workers in Yogyakarta, offering them some relief against inflation and improving their purchasing power. It shows the government is committed to protecting the livelihoods of its citizens.
NewsDirectory3: The increase follows guidelines set by the Ministry of Manpower. Do you believe this centralized approach to minimum wage determination is effective?
Dr. Lestari: There are pros and cons to this approach. While it ensures a degree of uniformity across provinces,it doesn’t always capture the unique economic realities of each region.
NewsDirectory3: Yogyakarta has also implemented sector-specific minimum wages. Can you elaborate on the rationale behind this?
Dr. Lestari: Some sectors, like construction or hospitality, involve greater risks, specialized skills, or demanding workloads.
Tailored minimum wages help address these disparities and ensure fairer compensation for individuals working in those sectors.
NewsDirectory3: What potential challenges might arise from this policy?
Dr. Lestari: A key concern is the potential impact on small businesses. A significant wage increase, even if sector-specific, could strain their finances and lead to job losses.
NewsDirectory3: what is your overall outlook on the future of the Yogyakarta labor market in light of these changes?
Dr. Lestari: The minimum wage increase is a positive step, but its long-term impact will depend on factors like economic growth and government policies supporting small businesses. A balanced approach that considers both worker welfare and business sustainability is crucial for a thriving labor market in Yogyakarta.