Yogya is the region that has the lowest minimum wages in Indonesia. The gudeg city has the rate of Rp1,765,000 in 2021 for its minimum wages. The living cost in Yogya is relatively high. People say that the minimum standard of living in Yogya should be ideally above Rp 2 million. 

The minimum wage in several provinces on the Java island is also not much different, such as Central Java (Rp. 1,798,000), West Java (Rp. 1,810,351), and East Java (Rp. 1,868,000). However, we got news for Jogjanese because the minimum wage has increased. 

The minimum wage for 2022 was reported to have increased by 4.30 percent or Rp75,915.53 to Rp1,850,915 from the previous (2021) of Rp1,765,000. This number exceeds the national minimum wage increase of 1.09 percent and is the highest increase compared to other provinces.

Yogya's minimum wage has risen one strip to the second-lowest position, shifting Central Java with this increase. So that it no longer holds the title as the province with the lowest minimum wage.

The decision to increase the minimum wage was determined by the Governor of DIY, Sri Sultan Hamengku Buwono X, through Governor's Decree No. 372/KEP/2021 concerning the Determination of the Provincial Minimum Wage in 2022.

Sultan said that the increase in the minimum wage amounted to Rp. 75,915.53 based on the recommendation of the Provincial Wage Council, which consisted of trade unions, entrepreneurs, the government, the Central Statistics Agency (BPS), and academics.

District or city minimum wage in Yogya

The Sultan also announced the city minimum wage (UMK) in 2022. From the five cities in Yogya, Gunung Kidul Regency recorded the highest increase with a percentage of 7.34 percent (Rp1,30,000). Followed by Kulonprogo Regency (5.50 percent), Sleman Regency 5.12 percent), Yogyakarta City (4.08 percent), and Bantul Regency (4.04 percent).

Meanwhile, based on the nominal amount, Yogyakarta City UMK is still the highest at Rp2,153,970. Gunung Kidul Regency, which recorded the highest percentage increase, was still nominally the lowest with Rp1,900,000.

The Regency/City UMK in 2022 is determined through SK/373/KEP/2021 concerning the Determination of the Regency/City Minimum Wage in 2022.

Sultan said that there are differences in the calculation of the 2021 and 2022 UMP/UMK. Referring to Government Regulation (PP) Number 36 of 2021 concerning Wages, the UMP and UMK are calculated based on the minimum wage calculation formula, using BPS data which includes economic growth or regional inflation, the average consumption per capita, the number of household members, and the number of working household members.

"If yesterday (UMP/UMK 2021) inflation and economic growth were national, now inflation and regional economic growth are. So if the province has good growth, automatically the wages will be good," said Sultan, quoting Okezone.com.

In line with the Sultan's expression, one factor that influences the increase in the minimum wage in Yogya is economic growth.