Payroll News

Indonesia Plans 2020 Minimum Wage Increase of 8.51%

Oct. 22, 2019, 3:39 PM

Indonesia’s national government has ordered the governors of the country’s 34 provinces to increase the provincial minimum wages by more than 8% for 2020, roughly in line with the 2019 raise.

The increase is pegged to projected inflation of 3.39% and economic growth of 5.12%, for a total wage increase of 8.51%, Hanif Dhakiri, Indonesia’s minister of manpower, wrote in a letter (Indonesian) to the governors. The minimum wage in Southeast Asia’s largest economy varies by province, with governors typically releasing in late October or in November the annual increases that take effect Jan. 1 of the next year.


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