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IABF’s 60 Seconds: New Regulation on Minimum Wage Stipulation for 2023

The Minister of Manpower (“MoM”) has issued MoM Regulation (“MoMR”) Number 18 of 2022 on Minimum Wage Stipulation of 2023 (“Regulation”) on 16 November 2022. The Regulation sets that minimum wage consists of provincial minimum wage or municipality/city minimum wage based economic condition and manpower. The minimum wage stipulation is conducted towards (a) region which already has the minimum wage, (b) municipality/city which has no minimum wage, and (c) proliferated region (daerah pemekaran). The exception of minimum wage for employee/labour who has employment period for less than 1 (one) year applies if certain qualifications are fulfilled, including (a) education, (b) competence, and/or (c) work experience that is required to perform the occupation or position.

Previously, MoMR Number 15 of 2018 on Minimum Wage (“MoMR 15/2018”) is silent, inter alia, with regard to the minimum wage stipulation for proliferated region and the exception of minimum wage application based on certain qualifications. MoMR 15/2018 is revoked and declared to be ineffective according to MoMR Number 23 of 2021 on Revocation of Minister of Manpower Regulation as the Result of the Enactment of Law Number 11 of 2020 on Job Creation including the Implementing Regulation.


Published by: IABF Law Firm

Published on: 05 Dec 2022

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