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Scraping by in Paradise

Province of Sets Minimum Wage of US$116 per Month in 2014

(11/8/2013) The province of Bali has increased the minimum wage by 11.8% stipulating that in 2014 the lowest wage that can be paid to a worker us Rp. 1,321,000 (US$116) per month.

In 2013, the minimum wage level was set at Rp. 1,181,000 (US$104).

Minimum wage levels are set by a Provincial Wage Board that announced the minimum salary payable for the coming year after meeting on October 29, 2013. The Board is comprised of members drawn from business leaders, union representatives and government officials.

As reported by Bali Daily (The Jakarta Post), the Head of the Bali Manpower and transmigration Office I Gusti Agung Ngurah Sudarsana, said, “We are now waiting for endorsement from the governor before the minimum wage could be officially implemented.”

The minimum wage is based on market surveys, inflation rates, economic growth rates and the financial capabilities of the business sector. The resulting amount is theoretically the minimum amount needed for an unmarried worker to maintain a minimum standard of living.

Sudarsana told the press that the minimum wage was tied to the financial capabilities of small and medium-sized enterprises, and it was generally assumed that businesses in Bali's large tourism sector would pay their lowest-earning employees at levels higher than the stipulated minimum.

The Manpower  Department Chief also admitted that enforcement of the minimum wage level was weak with many companies failing to pay the amount set by the provincial government, “This year, our monitoring team has reprimanded several employers for paying wages below the minimum,” he explained.