Government Postpones 2026 Minimum Wage Announcement Amid Regulatory Overhaul
Jakarta. The Indonesian government has postponed the announcement of the 2026 minimum wage, which was originally scheduled for Friday, November 21, as mandated under the existing regulation. Minister of Manpower Yassierli said on Thursday that the decision follows the government’s effort to prepare a new wage-setting framework prioritizing fair and decent compensation, in line with a recent Constitutional Court mandate.
“We are forming a team to formulate and estimate what constitutes a decent living,” Yassierli said in Jakarta.
Under the revised regulation, the November 21 deadline will no longer apply to the determination of minimum wages for the following year.
The Manpower Ministry has established a special team to define standards and estimate the cost of decent living across regions, replacing Government Regulation No. 36/2021 on Wages. The forthcoming regulation will grant greater authority to regional wage councils to issue formal recommendations to governors during the decision-making process.
As a result, future wage adjustments will no longer be based on a single national reference figure, but instead will reflect the economic conditions and growth levels of each province, city, and regency, Yassierli said.
“The new government regulation on wages is expected to become an important instrument to achieve a more equitable wage structure and one that is responsive to regional circumstances,” she added.
Yassierli also emphasized that the policy shift aims to address long-standing wage disparities while ensuring certainty of decent living standards for workers nationwide.
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