“In consideration of the condition of the Indonesian economy during the Covid-19 pandemic and the need for national economic recovery, the Governors are asked to set the value of the 2021 Minimum Wage at the same level of the 2020 Minimum Wage.”Surat Edaran Nomor M/11/HK.04/2020
Bali and 28 other provinces have confirmed that they will follow the advice and keep the minimum salary in 2021 the same as it was in 2020. 5 other provinces have chosen to increase the minimum salary in their province (more info below).
The minimum salaries in Indonesia are called the UMP Indonesia and the UMK Bali.
Continue here to learn about the hefty penalties for employers who pay less than the legally required minimum wage.
UMP stands for “Upah Minimum Provinsi” or Provincial Minimum Wage. Indonesia has 34 provinces. A province is the highest level of the local government divisions in Indonesia. Each province sets their own UMP or minimum wage.
UMK stands for “Upah Minimum Kabupaten/Kota” or Regency/City Minimum Wage. Every province has its own regencies for which Bali has nine.
The UMP and UMK for the year 2020 (and copied into 2021) were calculated by the annual inflation and growth of the economy.
For 2020 the inflation fee was calculated at 3.39% and the growth of the economy at 5.12%. That gave a minimum raise of wages of 8.51% in comparison to 2019. Source: Surat Edaran Menteri Tenaga Kerja Nomor B-M/308/HI.01.00/X/2019 Tahun 2019.
Continue here to see the Indonesia minimum wage (Indonesia UMP) history over the previous years.
Ultimately, the minimum wage of the regencies (Denpasar, Tabanan …) should be higher than the minimum wage of the province (Bali).
The minimum wage is based on 40 hours of work per week and can either be;
- 7 hours per day and 40 hours per week for 6 days of work per week.
- 8 hours per day and 40 hours per week for 5 days of work per week.
Source; Law 13/2003 article 77 paragraph (2)
Continue here to find out what the Indonesian Law requirements are for sick leave or paid holiday when an employee’s son gets circumcised.
UMP Indonesia 2021 – Provincial Minimum Wage.
Below are the 2021 minimum monthly wages for the 34 provinces in Indonesia. 29 Provinces have not increased the minimum wage (as per suggestion from the central government). 5 Provinces have made an increase (marked by * below).
|Provinces in Indonesia||Minimum salary 2021|
|1. Bali||Rp 2,494,000|
|2. Jakarta *||Rp 4,416,186|
|3. Aceh||Rp 3,165,030|
|4. Banten||Rp 2,460,968|
|5. Banka Belitung||Rp 3,230,022|
|6. Bengkulu||Rp 2,213,604|
|7. West Nusa Tenggara (NTB)||Rp 2,183,883|
|8. Jambi||Rp 2,630,161|
|9. North Kalimantan||Rp 3,000,803|
|10. East Kalimantan||Rp 2,981,378|
|11. South Kalimantan||Rp 2,877,449|
|12. West Kalimantan||Rp 2,399,699|
|13. Central Kalimantan||Rp 2,890,093|
|14. North Sumatra||Rp 2,499,422|
|15. South Sumatra||Rp 3,043,111|
|16. West Sumatra||Rp 2,484,041|
|17. North Sulawesi||Rp 3,310,723|
|18. South Sulawesi *||Rp 3,165,876|
|19. South East Sulawesi||Rp 2,552,014|
|20. West Sulawesi||Rp 2,571,328|
|21. Central Sulawesi||Rp 2,303,711|
|22. Gorontalo||Rp 2,586,900|
|23. Maluku||Rp 2,604,960|
|24. North Maluku||Rp 2,721,530|
|25. Lampung||Rp 2,431,324|
|26. Papua||Rp 3,516,700|
|27. Riau||Rp 2,888,563|
|28. Riau Islands Province||Rp 3,005,383|
|29. East Nusa Tenggara (NTT)||Rp 1,945,902|
|30. West Papua||Rp 3,184,225|
|31. East Java *||Rp 1,868,777|
|32. Central Java *||Rp 1,798,979|
|33. West Java||Rp 1,810,351|
|34. Yogyakarta *||Rp 1,765,000|
UMK Bali 2021 – Regency/City Minimum Wage
The 2020 and 2021 minimum wage for Bali as a province is Rp 2,494,000 (UMP Bali) which was a raise of 8.51% from the Bali UMP in 2019 at Rp 2,297,968.
The nine regencies of Bali each have their own minimum wage (the UMK Bali). The minimum wage of each Bali regency cannot be lower than that of the Bali provincial minimum wage.
These are the Bali minimum wages for 2021;
|Regency in Bali||Minimum salary 2021|
Below is the official document from the local Bali Government confirming the 2021 minimum salaries per regency.
Sources: Upah Minimum Kabupaten Kota Bali UMK Bali 2020, Undang-Undang Republik Indonesia Nomor 13 Tahun 2003 Tentang Ketenagakerjaan, Peraturan Pemerintah Republik Indonesia Nomor 78 Tahun 2015 Tentang Pengupahan