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Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppIndonesia uses a decentralized minimum wage system where rates vary significantly by province and even by city/regency (kabupaten/kota). Understanding this system is essential for any PT PMA employer to ensure compliance and avoid criminal penalties.
| Level | Abbreviation | Set By | Applies To |
|---|---|---|---|
| Provincial Minimum Wage | UMP (Upah Minimum Provinsi) | Governor | All workers in the province |
| City/Regency Minimum Wage | UMK (Upah Minimum Kabupaten/Kota) | Governor (on Bupati/Mayor proposal) | Workers in that specific city/regency |
| Sectoral Minimum Wage | UMSP/UMSK | Governor | Workers in specific industry sectors |
Key rule: UMK must be equal to or higher than UMP. Employers must pay whichever is higher -- the UMP or the UMK of the regency where their business is located.
Under PP 51/2023 (Government Regulation on Wages), the annual minimum wage increase is calculated using the formula:
New UMP = Current UMP x (1 + % increase)
The percentage increase is determined by:
The government sets a national cap on the maximum increase percentage. For 2026, the national guideline allowed increases of 6-8% depending on provincial economic conditions.
| Province | UMP 2026 (IDR/month) | Increase from 2025 |
|---|---|---|
| DKI Jakarta | 5,396,000 | 6.5% |
| Bali | 3,156,300 | 6.5% |
| West Java (Jawa Barat) | 2,191,000 | 6.5% |
| East Java (Jawa Timur) | 2,190,000 | 6.2% |
| Central Java (Jawa Tengah) | 2,109,000 | 6.0% |
| Yogyakarta (DIY) | 2,215,000 | 6.5% |
| Banten | 2,892,000 | 6.7% |
| North Sulawesi | 3,650,000 | 6.5% |
| Papua | 3,864,000 | 6.2% |
| East Kalimantan | 3,430,000 | 6.5% |
| Riau Islands (Kepri) |
Note: These figures are based on Governor Decrees published in late 2025. Always verify with the latest Keputusan Gubernur for exact figures.
For businesses operating in Bali, the UMK varies significantly by regency:
| Regency/City | UMK 2026 (IDR/month) | Key Industries |
|---|---|---|
| Badung | 3,472,000 | Tourism, hospitality, F&B |
| Denpasar | 3,392,000 | Services, retail, office |
| Gianyar | 3,275,000 | Arts, tourism, craft |
| Tabanan | 3,210,000 | Agriculture, tourism |
| Karangasem | 3,180,000 | Tourism, agriculture |
| Klungkung | 3,178,000 | Craft, tourism |
| Bangli | 3,165,000 | Agriculture, tourism |
| Buleleng | 3,170,000 | Tourism, agriculture, fishery |
| Jembrana | 3,160,000 | Agriculture, fishery |
Badung has the highest UMK in Bali because it includes the major tourism areas of Kuta, Seminyak, Canggu, Nusa Dua, and Uluwatu. If your PT PMA is registered in Badung, you must pay at least IDR 3,472,000/month even if your employees work remotely from a lower-wage regency.
Minimum wage in Indonesia refers to the base salary (upah pokok) for a worker with zero years of experience in the lowest position. It specifically:
Under PP 51/2023, the base salary must be at least 75% of total take-home pay. This means:
| Component | Minimum | Maximum |
|---|---|---|
| Base salary (upah pokok) | 75% of total | 100% of total |
| Fixed allowances | 0% | 25% of total |
| Non-fixed allowances | Not counted toward minimum wage | Unlimited |
Example: If a worker's total monthly package is IDR 4,000,000:
Employers may set a probation period of up to 3 months for new employees, but wages during probation cannot be below minimum wage. Unlike some countries, Indonesia does not allow a reduced "probationary wage."
Some provinces establish sector-specific minimum wages (UMSP/UMSK) that are higher than the general UMK. These typically apply to:
In Bali, the hospitality and tourism sector may have a sectoral minimum that exceeds the standard UMK. Check with the local Disnaker for current sectoral rates.
Under the Cipta Kerja Law (UU 6/2023), micro and small enterprises (UMK/UMKM) may be exempted from minimum wage requirements if they meet certain criteria:
| Business Size | Annual Revenue | Exemption |
|---|---|---|
| Micro | Up to IDR 2 billion | May negotiate wages below UMP/UMK |
| Small | IDR 2-15 billion | May negotiate wages below UMP/UMK |
| Medium and Large | Above IDR 15 billion | Must comply with UMP/UMK |
Important for PT PMA: Most PT PMA companies are classified as medium or large due to minimum capital requirements (IDR 10 billion authorized capital). The micro/small exemption rarely applies to foreign-owned companies.
| Violation | Imprisonment | Fine |
|---|---|---|
| Paying below minimum wage | 1-4 years | IDR 100-400M |
| Not paying wages at all | 1-4 years | IDR 100-400M |
| Late wage payment (repeatedly) | Administrative sanctions | Varies |
The Manpower Office (Disnaker) can impose:
Employees who are underpaid can:
The total employment cost significantly exceeds the minimum wage:
| Component | Approximate % of Base Salary |
|---|---|
| Base salary | 100% |
| BPJS Kesehatan (employer 4%) | 4% |
| BPJS JKK (0.24-1.74%) | ~1% |
| BPJS JKM (0.30%) | 0.3% |
| BPJS JHT (employer 3.7%) | 3.7% |
| BPJS JP (employer 2%) | 2% |
| THR (1 month salary, amortized) | ~8.3% |
| Total employer cost | ~119-120% of base salary |
For a minimum-wage employee in Badung (IDR 3,472,000):
While minimum wage is the legal floor, competitive wages in Bali's key sectors often exceed it:
| Role | Typical Monthly Salary (IDR) |
|---|---|
| Restaurant server/barista | 3.5-5M |
| Hotel front desk | 4-6M |
| Office administrator | 4-7M |
| Marketing staff | 5-10M |
| Accountant | 6-12M |
| IT developer | 8-20M |
| Senior manager | 15-35M |
Bali's provincial minimum wage (UMP) for 2026 is IDR 3,156,300 per month. However, individual regencies set higher UMK rates: Badung IDR 3,472,000, Denpasar IDR 3,392,000, Gianyar IDR 3,275,000, and Tabanan IDR 3,210,000. Employers must pay at least the UMK of their operating regency.
Paying below minimum wage is a criminal offense under UU 13/2003 as amended by UU 6/2023. Penalties include imprisonment of 1-4 years and/or fines of IDR 100 million to IDR 400 million. The Manpower Office (Disnaker) can also impose administrative sanctions including business license suspension.
Yes, minimum wage applies to all workers in Indonesia regardless of nationality. However, foreign workers on KITAS typically earn well above minimum wage due to the expertise requirements for obtaining work permits. The RPTKA application requires disclosure of the foreign worker's salary.
Bali Zero assists PT PMA employers with:
Contact us at info@balizero.com or WhatsApp +62 813 3805 1876 for employer compliance support.
| 3,540,000 |
| 6.3% |
| West Papua | 3,615,000 | 6.0% |
| South Sulawesi | 3,385,000 | 6.5% |
| North Sumatra | 2,870,000 | 6.5% |
| West Sumatra | 2,811,000 | 6.3% |