Denpasar Sets Minimum Wage for 2026

The authorities of Denpasar (Bali) propose a new minimum wage (UMK) level for workers in 2026. The recommendation was made by Denpasar's mayor, I Gusti Ngurah Jaya Negara, with new regulations taking effect from January 1, 2026.

According to the official statement from Denpasar's Department of Labor, the minimum wage in Denpasar for 2026 will be IDR 3,499,878.78 (approximately 3.5 million IDR). This represents an increase of 6.12% compared to 2025, when the UMK was around IDR 3,298,116.50.

This increase was determined based on decisions by the city wage council—a consultative body where wage levels are discussed with representatives from the government, employers, and trade unions.

The new minimum wage will apply to employees with less than one year of experience in a company. These workers will receive at least IDR 3,499,878.78 per month. For those who have been with the same company for one year or more, the salary will be calculated based on the wage scale set by the employer, not directly according to the UMK.

Raising the minimum wage is part of government policy aimed at protecting workers' rights and improving their living standards. This is especially important in Denpasar, where the cost of living is higher than in other regions due to higher prices for housing, food, and transportation. The increase in the UMK helps effectively manage daily expenses and boosts the purchasing power of the population.

Additionally, salary growth stimulates consumer activity: with a higher income, residents spend more on goods and services—in shops, cafes, and the service sector, ultimately supporting the city's economic development.

Besides Denpasar, authorities in Bali also plan to raise the minimum wage at the district level. Meanwhile, the government aims to balance the interests of workers and business capabilities so that wage growth doesn't become too intense for companies and doesn't slow down economic activity.

The recommendation by the city wage council was officially approved by the governor of Bali on December 24, 2025. The new minimum wage will apply from January 1, 2026, for all population categories.