It used to be called UMR, now it is UMK, does anyone know? All pages – The discussion regarding the determination of the minimum wage has become a public concern following the establishment of the City/District Minimum Wage (UMK) in a number of regions.

Discussions on minimum wages are always followed by dynamics, both from the workers and employers. In general, the minimum wage is the standard set by the government for employers in paying workers’ wages, the increase of which is determined once a year.

Apart from the UMK, there is the term Provincial Minimum Wage. If the UMK is a stipulation of the minimum wage at the district/city level, then the UMP applies to the province.

The UMP set by the governor will usually be the benchmark for regents or mayors to decide on the UMK in their area.

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That’s why the announcement of the UMP setting will be released first by the governor. Only then will the regents and mayors set the UMK.

If the mayor and regent have not set the UMK by the deadline set by the governor, the district/city will use the UMP as the minimum wage.

Why did UMR become UMK?

Both UMP and UMK are currently replacing the term previously used, namely the Regional Minimum Wage (UMR). Now, the term UMR is no longer used officially.

However, many ordinary people are still more familiar with the term UMR to refer to the minimum wage in an area, rather than using the terms UMK or UMP. What is the difference between UMR and UMK?

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The term UMR which was replaced by UMP and UMK only appeared after the decree of the Minister of Manpower and Transmigration Number 226 of 2000 was passed. The Ministerial Decree changed a number of articles in the Minister of Manpower Regulation No. 01 of 1999.

In the New Order era, through Permenaker No. 01 of 1999, it was explained that the UMR was the minimum wage which was determined by the governor as a reference for labor income in his area.

The minimum wage is determined through a long process involving workers, employers and the government (tripartite).

In the process of determining it, a team called the Wage Council conducts a survey of workers’ living needs from food, clothing, to housing needs which are then obtained by a Decent Living Needs (KHL) figure.

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The UMR is divided into two, namely the UMR level I or at the provincial level, and the UMR level II or the district/city level minimum wage.

Through the Decree of the Minister of Manpower and Transmigration Number 226 of 2000, the Level I UMR was changed to the Provincial Minimum Wage (UMP).

Meanwhile, Level II UMR was changed to District/City Minimum Wage (UMK). Prior to the use of the terms UMP and UMK, all references to the minimum wage used the UMR, both Level I and Level II.

Apart from UMK and UMP, there are two other terms in the wage regulations. First, the Provincial Sectoral Minimum Wage (UMS), previously named the Level I Regional Sectoral Minimum Wage.

Meanwhile, at the district/city level, it is known as the District/City Minimum Sectoral Wage (UMS). Previously, previously used the term Regional Sectoral Minimum Wage Level I.

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