Is the UMP Enough for a Single Worker? Check the facts:

Since January 2025, the Upah Minimum Provinsi (UMP) has officially increased by 6.5%, as stipulated in Permenaker No. 16 of 2024. While this increase is welcome, it raises the question: Is the current UMP sufficient to cover workers' basic living expenses?

Data on living costs from 2022 by the Central Statistics Agency (BPS) provides insight into spending on goods and services in various districts and cities. The ten regions with the highest cost of living recorded numbers exceeding Rp10,000,000 per household per month.

Assuming one household consists of three to four members, the cost of living per capita can be calculated and compared with the UMP of each region. Cities such as Banjarmasin, Semarang, and Surabaya have UMPs that are not in line with estimated per capita living expenses.

What would things be like if the UMP were the main source of household income? Unfortunately, none of the ten regions with the highest cost of living show that the UMP is sufficient to support a household.

However, it should be noted that UMP is not the only basis for wages. Many companies implement a structure and scale of wages (SSU) that considers work experience, responsibilities, and skills. In practice, this can supplement the UMP, bringing workers' income closer to their actual living expenses.

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