Government Regulation
In forcePP 36/2021
No. 36 of 2021
Peraturan Pemerintah (PP) Nomor 36 Tahun 2021 tentang Pengupahan
Issued
Feb 2, 2021
Effective
Feb 2, 2021
Issuer
Indonesia, Pemerintah Pusat
Status
In force
Peraturan Pemerintah (PP) Nomor 36 Tahun 2021 tentang Pengupahan
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Plain-English summary of the regulation's substance and how it affects PT PMA operations.
This regulation, Government Regulation No. 36 of 2021, establishes the framework for wage determination in Indonesia, implementing provisions from the Job Creation Law (Undang-Undang Nomor 11 Tahun 2020). It aims to create a more flexible and competitive labor market while ensuring fair compensation for workers.
This regulation affects employers across various sectors in Indonesia, particularly those with a workforce that falls under the scope of the labor laws. It applies to all businesses that employ workers, including both domestic and foreign investments.
Employers are required to comply with the minimum wage standards set forth in Pasal 5, which mandates that wages must be paid in cash and not less than the minimum wage determined by local governments. Additionally, Pasal 8 outlines the rights of workers to receive wages on time, while Pasal 10 emphasizes the importance of wage transparency and the obligation of employers to provide clear wage structures to their employees.
Key terms include 'Upah Minimum' (Minimum Wage), which refers to the lowest legal wage that can be paid to workers, and 'Ketenagakerjaan' (Labor), which encompasses all aspects of employment and labor relations.
This regulation came into effect on February 2, 2021, and does not explicitly state transitional provisions or amendments to previous regulations, but it is intended to replace any conflicting provisions in prior labor laws.
The regulation interacts with the Job Creation Law (Undang-Undang Nomor 11 Tahun 2020) and the previous Labor Law (Undang-Undang Nomor 13 Tahun 2003), ensuring that wage regulations align with the broader goals of labor market reform as outlined in these laws.
The articles and operational points most commonly referenced in practice.
Pasal 5 mandates that employers must pay their employees at least the minimum wage set by local authorities, ensuring that workers receive fair compensation.
According to Pasal 8, employers are obligated to pay wages on time, providing workers with financial stability and predictability.
Pasal 10 requires employers to maintain transparency in wage structures, ensuring that employees understand how their wages are calculated and what they can expect.
Pasal 5 also specifies that wages must be paid in cash, reinforcing the need for direct financial transactions between employers and employees.
This regulation applies to all employers in Indonesia, including both domestic and foreign entities, as stated in the introductory provisions.
Full text extracted from the official PDF (3K chars). For legal disputes, cite the official JDIH BPK source linked below.
SALIN AN PRES I DEN REPUBLIK INDONESIA PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 36 TAHUN 2021 TENTANG PENGUPAHAN DENGAN RAHMAT TUHAN YANG MAHA ESA PRESIDEN REPUBLIK INDONESIA, Menimbang : bahwa untuk melaksanakan ketentuan Pasal 81 dan Pasal 185 huruf b Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja, perlu menetapkan Peraturan Pemerintah tentang Pengupahan; Mengingat SK No 086163 A : 1. Pasal 5 ayat (2) Undang-Undang Dasar Negara Republik Indonesia Tahun 1945; 2. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan (Lembaran Negara Republik Indonesia Tahun 2003 Nomor 39, Tambahan Lembaran Negara Republik Indonesia Nomor 4279); 3. Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja (Lembaran Negara Republik Indonesia Tahun 2020 Nomor 245, Tambahan Lembaran Negara Republik Indonesia Nomor 6573); MEMUTUSKAN: ... -- 1 of 75 -- -- 2 of 75 -- -- 3 of 75 -- -- 4 of 75 -- -- 5 of 75 -- -- 6 of 75 -- -- 7 of 75 -- -- 8 of 75 -- -- 9 of 75 -- -- 10 of 75 -- -- 11 of 75 -- -- 12 of 75 -- -- 13 of 75 -- -- 14 of 75 -- -- 15 of 75 -- -- 16 of 75 -- -- 17 of 75 -- -- 18 of 75 -- -- 19 of 75 -- -- 20 of 75 -- -- 21 of 75 -- -- 22 of 75 -- -- 23 of 75 -- -- 24 of 75 -- -- 25 of 75 -- -- 26 of 75 -- -- 27 of 75 -- -- 28 of 75 -- -- 29 of 75 -- -- 30 of 75 -- -- 31 of 75 -- -- 32 of 75 -- -- 33 of 75 -- -- 34 of 75 -- -- 35 of 75 -- -- 36 of 75 -- -- 37 of 75 -- -- 38 of 75 -- -- 39 of 75 -- -- 40 of 75 -- -- 41 of 75 -- -- 42 of 75 -- -- 43 of 75 -- -- 44 of 75 -- -- 45 of 75 -- -- 46 of 75 -- -- 47 of 75 -- -- 48 of 75 -- -- 49 of 75 -- -- 50 of 75 -- -- 51 of 75 -- -- 52 of 75 -- -- 53 of 75 -- -- 54 of 75 -- -- 55 of 75 -- -- 56 of 75 -- PRESIDEN REPUBLIK INDONESIA Agar setiap orang mengetahuinya, memerintahkan pengundangan Peraturan Pemerintah ini dengan penempatannya dalam Lembaran Negara Republik Indonesia. Ditetapkan di Jakarta pada tanggal 2 Februari 2021 PRESIDEN REPUBLIK INDONESIA, ttd. JOKOWIDODO Diundangkan di Jakarta pada tanggal 2 Februari 2021 MENTER! HUKUM DAN HAK ASASI MANUSIA REPUBLIK INDONESIA, ttd. YASONNA H. LAOLY LEMBARAN NEGARA REPUBLIK INDONESIA TAHUN 2021 NOMOR 46 Salinan sesuai dengan aslinya KEMENTERIAN SEKRETARIAT NEGARA REPUBLIK INDONESIA ����ng Perundang-undangan dan ��WJJ�·nistrasi Hukurn, �)•GJiSlll...._,,.,� SK No 086138 A -- 57 of 75 -- -- 58 of 75 -- -- 59 of 75 -- -- 60 of 75 -- -- 61 of 75 -- -- 62 of 75 -- -- 63 of 75 -- -- 64 of 75 -- -- 65 of 75 -- -- 66 of 75 -- -- 67 of 75 -- -- 68 of 75 -- -- 69 of 75 -- -- 70 of 75 -- -- 71 of 75 -- -- 72 of 75 -- -- 73 of 75 -- -- 74 of 75 -- -- 75 of 75 --
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Pemerintah (PP) Nomor 36 Tahun 2021 tentang Pengupahan
tentang KETENAGAKERJAAN - CIPTA KERJA
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Employers must ensure compliance with this regulation alongside other labor laws, particularly the Job Creation Law, as referenced in the regulation's preamble.