New minimum wage policy earns praise from labor

The government has issued new rules for determining minimum wages as labor and business have failed to find common ground. In a virtual press briefing on Saturday, Manpower Minister Ida Fauziyah announced Ministerial Regulation No. 18/2022, which introduces a new formula for setting minimum wages for 2023. In the absence of this regulation, Government Regulation (PP) No. 36/2021 on wages, which is based on the Job Creation Law passed in 2020, would have been the basis for setting next year’s minimum pay.