The minimum wage (MW) is the lowest level of labor remuneration that applies to employees of companies. It is calculated based on the minimum wage set by the government. The MW can be statewide or regional. When calculating it, the government takes into account the cost of food in the region,the cost of living, and other factors.
The Balinese government has approved a new minimum wage for 2024. It is now set at 2,816,672 IDR, which is 100,000 rupees higher than in 2023 and 3.68% higher compared to 2023.
The Head of the Department of Manpower (ESDM) Ida Bagus Setiawan announced that the new MW,according to the rules (PP Nomor 31 Tahun 2023), and the new governor's decree on MW,published under 979/03-M/ND/2023,all companies operating in Bali must implement the new minimum wage from January 1,2024. If you have an official organization in Bali and handle accounting,from 2024,you must pay your employees a salary not lower than the new MW.
Regional Minimum Wages
- Badung - 3,318,628.06 IDR
- Denpasar - 3,096,823 IDR
- Gianyar - 2,928,713 IDR
- Tabanan - 2,913,164.74 IDR
- The rest of the five districts have a MW equivalent to the base amount,namely 2,813,672 IDR.
The country implements labor law,the violation of which may result in additional organization checks and penalties.
There are two types of standard workweeks in Indonesia: 6 working days a week for 7 hours a day and 5 working days a week for 8 hours a day. Rest periods are not considered working hours for the day.
According to the company's personnel law,firms are obliged to file applications for the rest and leave of their employees.
To calculate an employee's salary,the following documents need to be considered: employment contract, appointment for a specific job position, staffing schedule, and the general employment policy.
Although similar, MW and the minimum remuneration level (MRL) differ. MW is the lowest level of labor remuneration set by the government that employers must pay their employees for actual work time. The MRL is the minimum level of labor remuneration that can be set by a company, industry, or region, which can be higher than MW.