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Monthly Minimum Wage Raised to between US$73.66 to US$86.56

Bali Employers Required to Pay New Minimum Rates Starting from January 2, 2008.

(11/24/2007) The Bali Post reports that the Governor of Bali has set a new minimum wage level of between Rp.685,000 (US$73.66) to Rp. 805,000 (US$86.56) per month for workers in regencies and cities across Bali. The new levels take effect from January 2, 2008 and vary depending on the area of employment. The highest rate applies for workers employed in the most populous Bandung regency of Bali.

The new minimum wage levels, set out in the Governor's Rule No. 8 of 2007, provide for monthly wage minimum of Rp. 685,000 in the Bangli, Tabanan dan Buleleng regencies. The minimum wage for Denpasar is Rp. 800,000 (US$82); Rp. 760,000 for Gianyar regency (US$81.72); Rp. 737,500 (US$79.30) for Jembrana regency; Rp. 712,320 (US$76.59) for Karangasem regency; and Rp.686,000 (US$73.76) for Klungkung regency.

The new regulation issued by the Governor states that the minimum wage paid by a company shall be based on a consensus reached between the business and the head of the union, taking into consideration the company's financial capabilities and the general cost of living.

Companies are entitled under the law to request a postponement of any mandated wage increase from the Department of Manpower. To obtain a postponement the employer must submit company results for the past two years and minutes of meetings conducted with the company's union discussing the requested delay in paying the required minimum wage.