Calculation of West Java UMR as a Benchmark for Decent Living

The existence of UMR West Java is an important thing for workers in this region. Of course, the amount of wage value is very influential there is a salary that you get if you work in West Java. For this reason, knowing the minimum wage set must be known before starting work.

Generally every year, wages always increase. There are rules governing wage increases. Usually the increase is regulated based on the calculation of various things including inflation that occurs in a region. The regional minimum wage is the lowest limit in salaries that can be given by companies or other agencies.

The amount of this wage itself usually has a different value between one city and another. This happens because the determination of UMR is carried out by the city and district governments. The provincial government also has authority in determining the value of the revenue. Likewise with WEST Java UMR based on standard determination.

Each region has the authority in determining the amount of regional income standards including West Java province. Not only is it different from one city to another, the determination of this salary for each province also experiences differences. This can also be the reason for UMR in one region different from other places.

Determination of West Java UMR as a Salary Giving Standard

In determining the standard of opinion, there are several factors that must be known. These include the inflation rate and people’s purchasing power. This criterion applies not only in West Java but also other regions. Standards for meeting the needs of decent living are also a factor in the determination of the minimum wage.

Considerations about people’s purchasing power in a region and inflation that occurs nationally are also important factors. The calculation of the income of the area will be a reflection in meeting the needs of decent living. These various criteria then create a formula in determining UMR.

There are two levels of UMR based on ministerial regulations, namely based on provincial and municipal standards. Salaries based on provincial standards are commonly referred to as UMP which are set according to local government rules. Meanwhile, for the second type, namely the salary standard in the city or district commonly called UMK.

Umk value is generally greater than provincial wages. As with other regions, WEST Java UMR also follows the applicable provisions. The determination itself is usually done by the regional leader in this case, namely the governor. While the value of UMP becomes a reference in determining UMK.

The Amount of Salary Earned Based on UMR Value

In determining the minimum salary of an area after knowing the next decisive factor, namely knowing the calculation of the amount of UMR. Because this minimum wage always changes every year, the calculation of the value needs to be known. This is in accordance with existing regulations.

UMR West Java itself follows the governor’s decree no. 561 of 2020. The decision contains the minimum wage rules for both cities and regencies in West Java. Based on these provisions, the area in West Java, namely Karawang, has the highest minimum income. In 2021 UMK in Karawang reached Rp 4,798,312.

This value is higher than the previous year, which is 2020. Where in 2020 UMK Karawang around Rp 4,594,000. The amount of income makes Karawang as the area with the highest UMK value both in West Java and Indonesia. This is because the influence of karawang region revenues continues to increase.

As a city with high industrial activities, Karawang has a fairly high UMK value. While for the lowest UMK in West Java, there is a Banjar regency. In 2021, UMK banjar regency did not increase and still as before the previous year, which was Rp 1,831,884.

Calculation of West Java UMR Value Based on Regulations

Economic growth and the rate of inflation both regionally and nationally affect the size of a region’s income. In addition, there are several rules used as a benchmark calculation of umr values. Among them are the circular letter of the minister of manpower, the recommendation of the regent or mayor and the letter of the wage board.

By paying attention to these various aspects, local governments can easily determine the wages of each region. Letters and recommendations of regents / mayors in the West Java region became the government’s benchmark in determining the amount of UMR. The recommendation by the provincial government will be reviewed mainly in terms of reasons.

West Java UMR is not only a wage given to workers but also a reference standard in determining the lives of local people. That is why the calculation of wages is carried out carefully taking into account various factors and aspects. This value is not only important for workers but also for local governments.

Both local and central governments have regulations that regulate the standard of calculating the salary of a region. Even so, the minimum salary is still fully handed over to the local government, both city or district and province. Through economic growth and inflation factors, the value of UMR can also be unchanged.

Methods Used to Calculate West Java UMR

Notification of minimum wage provisions is usually made every year towards the end of the year. This is done so that in the following year, the minimum wage has begun to be used. In calculating the amount of the value is determined by the Wage Council based on the needs of decent living.

The wage board itself usually consists of representatives of each stakeholder such as employers and workers. In addition, the government and academics are also involved in the wage board in order to create the right wages. In an effort to determine wages, the wage board usually conducts a survey of the price of basic necessities.

The survey became the basis in determining the standard of living feasible for the community and a benchmark in determining UMK. UMR in West Java usually does not differ much from the value can even be more. By 2015, the method had changed and replaced it with two very decisive components.

These components are economic growth and national inflation. So that the increase in the amount of public income is largely determined based on the state of the country’s economy. Umr calculations use the formula of the inflation rate plus the percentage of domestic growth and multiplied by the minimum wage of the previous year. The percentage is then multiplied again by the UMR of the current year again.

Determination of West Java UMR and Working Hours

The determination of the UMR value of an area cannot be separated from the time given. The salary is given for the calculation of working time, which is 40 hours every week. The timing is based on existing laws. In addition to working hours, the provision also contains the length of the day.

There are two criteria for determining working time, namely 7 and 8 hours every day. If the worker uses a duration of 7 hours every day then the work is done for 6 days in 1 week. Meanwhile, if the duration used is 8 hours, then the length of work time is 5 days for 1 week.

With the creation of regulations regarding the determination of wages and duration of work aims to balance the obligations and rights of workers. In addition, the formula used in umr calculations becomes a mechanism to provide a proper wage method in each region.

The amount of salary of an area becomes an important thing because it becomes a determinant in fulfilling the needs of one’s decent life. To determine its own value there are many factors that need to be considered so that each region has a different wage magnitude. West Java UMR is determined based on the calculations and provisions of the local government.