Kapanlagi.com - On December 11, 2024, the Acting Governor of East Java, Adhy Karyono, officially announced the Provincial Minimum Wage (UMP) for the year 2025 at Rp2,305,985. This figure shows a significant increase of Rp140,741 or 6.5 percent compared to the previous year, which was only Rp2,165,244.
This increase is not separate from the policies of the central government, as stated in the Minister of Manpower Regulation Number 16 of 2024 and the East Java Governor's Decree Number: 100.3.3.1/737/KPTS/013/2024. With this UMP determination, it is hoped that the welfare of workers will improve, the purchasing power of the community will be boosted, and ultimately, economic growth in East Java will thrive.
However, behind this good news, there are challenges that must be faced by business actors, especially Micro, Small, and Medium Enterprises (MSMEs) that operate with very thin profit margins.
"The decision to raise the UMP in 2025 is good news for all segments of society," said Adhy Karyono, as reported by ANTARA on Thursday (12/12/2024). Nevertheless, he also realizes that this step could pose a significant challenge for business actors.
The East Java Provincial Government has officially established the Minimum Provincial Wage (UMP) for 2025, taking into account various important aspects.
This increase is based on the Minister of Manpower Regulation Number 16 of 2024 and is calculated using a formula that combines economic growth, inflation, and certain indices.
Interestingly, the determination of the UMP amount is the result of an agreement between workers and employers, where the Wage Council proposed an amount of Rp2,305,985, while employers proposed Rp2,215,044. Thus, this decision reflects a harmonious collaboration for the common welfare.
With the UMP reaching Rp2,305,985, East Java now leads as the province with the highest minimum wage on the island of Java. For comparison, the UMP in West Java is at Rp2,191,238, while Central Java is slightly lower at Rp2,169,349.
On the other hand, the Special Region of Yogyakarta has set the UMP for 2025 at Rp2,264,080.95.
In the latest spotlight on the Minimum Wage for Districts/Cities (UMK) in East Java for the year 2025, Surabaya City leads with an impressive figure of Rp 4,961,753.00, followed by Gresik and Sidoarjo regencies, which recorded Rp 4,874,133.00 and Rp 4,870,511.00 respectively.
Equally interesting, Malang Regency and Malang City also show significant figures, namely Rp 3,553,530.00 and Rp 3,507,693.00. Meanwhile, in other areas such as Jember and Banyuwangi regencies, the UMK is recorded lower, at Rp 2,838,642.00 and Rp 2,810,139.00.
From Gresik to Situbondo, every district and city in East Java demonstrates a commitment to improving worker welfare, despite noticeable variations in wage amounts.
The increase in the Provincial Minimum Wage (UMP) for 2025 in East Java is predicted to bring fresh air as well as challenges for society and the business world. With higher wages, the purchasing power of the community is expected to increase, encouraging more active consumption and invigorating the local economy.
In addition, workers will be more motivated to improve their productivity, creating a more dynamic work atmosphere.
However, behind these benefits, companies, especially Micro, Small, and Medium Enterprises (UMKM), must be prepared to face challenges in managing increasingly rising operational costs. A change full of hope, but also requiring careful strategy!
UMP, or Provincial Minimum Wage, is a vital benchmark that must be adhered to by every employer in paying their workers' wages in a province.
Provincial Minimum Wage (UMP) is determined through a sophisticated formula that integrates various important factors, such as economic growth, inflation rates, and specific indices set by the central government.
The increase in Provincial Minimum Wage (UMP) is expected to be a breath of fresh air for workers, with the hope of boosting their purchasing power and welfare.
The increase in Provincial Minimum Wage (UMP) may indeed burden the operational costs of companies, but on the other hand, this step has the potential to boost the morale and productivity of workers.
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