Manpower minister targets initial 2027 wage talks by late November

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2 hours ago

Jakarta (ANTARA) – Manpower Minister Yassierli has set a target to complete the initial discussions on the 2027 provincial minimum wage (UMP) by the end of November 2026.

“Our target is the last week of November. It will be by the end of November, although I cannot recall the exact date. By then, at the very least, we aim to have completed the evaluation at the ministry level,” Yassierli told reporters here on Tuesday.

He further explained that discussions and calculations concerning the 2027 UMP must follow established mechanisms and procedures, including consultations with the National Wage Council.

“Regarding the UMP, once again, we already have a mechanism in place. The matter will be discussed by the National Wage Council and subsequently addressed in stages by regional wage councils,” the minister said.

Previously, Yassierli said the government was still calculating the estimated decent living needs (KHL), which would serve as one of the considerations in determining the 2027 UMP.

Besides estimating decent living needs, the Ministry of Manpower will discuss the wage-setting formula with the National Tripartite Cooperation Institution (LKS Tripartit Nasional) and the National Wage Council (Depernas).

The discussions will cover follow-up measures to fulfill statutory requirements, particularly those concerning decent living needs and surveys that form part of the minimum wage-setting process.

The 2027 UMP rates will be determined by the governors of each province, taking into account recommendations from their respective provincial wage councils.

Meanwhile, the Ministry of Manpower said the determination of the 2027 minimum wage would continue to refer to Government Regulation No. 49 of 2025.

“The determination of the minimum wage specifically for 2027 will continue to refer to Government Regulation No. 49 of 2025,” Director of Industrial Relations and Wage Policy at the Ministry of Manpower Dhatun Kuswandari told ANTARA in Jakarta on Wednesday (October 21).

Under Government Regulation No. 49 of 2025, the range for the specific index, or alpha, which reflects labor’s contribution to economic growth, is set at 0.5 to 0.9.

The regulation also retains inflation and economic growth as the variables in the basic formula for calculating minimum wage adjustments.