Back to blog

New Minimum Wage Indicators Set in Bali and Indonesia for 2026

If you run a business in Indonesia, you probably have local employees on your staff.

The payroll of permanent staff is regulated by the government. To this end, the government sets a minimum wage below which an employee cannot be paid, but above that - always welcome.

Every year the state recalculates this established minimum. The new figures are published in December and come into effect from January 1 of the following year.

In addition to the general minimum wage level, Indonesia also has regional, district, and sectoral indicators that need to be checked against the location and type of your business. For example, if you have a restaurant business in Bali in the Badung district, you will look for figures specifically for this sector and location.

In Indonesia, they use four main types of minimum wage.

They are listed below with Indonesian abbreviations, decryption, and description:

  • UMP (Upah Minimum Provinsi) - provincial minimum wage.

Provinces in Indonesia are considered different separate regions of the country, for example, Bali is one of the provinces.

UMP is the basic minimum wage level below which one cannot pay if there is no district level.

  • UMK (Upah Minimum Kabupaten/Kota) - this is the specified minimum at the city or district level. If your district has such an indicator, then you should refer to it.

  • UMSP (Upah Minimum Sektoral Provinsi) - this is the sectoral minimum wage applied to certain sectors of the economy, for example, hospitality and tourism are included here.

  • UMSK (Upah Minimum Sektoral Kabupaten/Kota) - this is the sectoral minimum set by the local city or district administration.

General basic and sectoral minimum wage levels in Bali in 2026

  • The basic level for Bali province in 2026 is 3,207,459 IDR per month.

  • The general sectoral level for tourism and hospitality/catering is 3,267,693 IDR per month.

Minimum wage indicators for specific Bali districts in 2026

  • Badung (southern, tourist part of the island, where most foreign businesses are located) - 3,791,002.57 IDR

  • Denpasar (the capital of the island and the main administrative center) - 3,499,878.78 IDR

  • Gianyar (Ubud and surroundings) - 3,316,798.48 IDR

  • Tabanan (western, non-tourist part of the island) - 3,287,678.87 IDR

What figures should employers ultimately focus on?

It's quite simple; first, let's find out whether a sectoral minimum at the city or district level (UMSK) applies to your business (see below for the sectoral level for Badung). If it is not set, use the general minimum for the city or district (UMK). If such an indicator is not available either, then refer to the provincial minimum (UMP) while checking if the sectoral minimum at the provincial level (UMSP) has been approved.

Note for those involved in the tourism business:

In 2026, a separate district-level sectoral wage indicator of the fourth type (UMSK) is set only for the Badung district in Bali. The sector of “Accommodation and Food and Beverage Provision” for 4 and 5-star hotels is set at 3,828,912.60 IDR per month.

If your business in Bali is located in other districts, use the district-level (if available) or provincial minimum (UMP) values, and if an approved sectoral minimum is available - UMSP. This is explicitly stated in the government decree on the established minimum wage.


What are the penalties for paying below the minimum (UMP/UMK)?

Based on the current provisions of labor law (including the Civil Code, Manpower Law, including the Job Creation Act 2023 and PP 36/2021 with amendments):

Criminal liability

An employer risks criminal liability for paying an employee a salary below the established minimum (UMP/UMK):

Imprisonment: from 1 to 4 years
Fine: from Rp 100,000,000 to Rp 400,000,000

Important remark in wage rules

If an employee has been employed with you for 1 year or more, not just the “minimum” applies, but the company's internal salary scale. When calculating, the position, qualification, experience, length of service, and responsibility of the employee must be taken into account. This is secured in many governor's decisions in plain text:

The general wage indicator (UMP/UMK) applies to workers with less than one year's experience.

For one year or more experience, the internal salary scale (struktur & skala upah) must be applied.

This is an internal organization document where salary ranges are described by position, considering level, experience, and responsibility. This document will protect you in cases of disputes with an employee if he considers that his official salary was underestimated. It will also be required if there is interest in the company by the inspecting authorities.


For an understanding of the general level of minimum wages across the country, below are the amounts set in the largest cities of Java island:

  • Jakarta - 5,729,876 IDR

  • Bandung - 4,737,678 IDR

  • Surabaya - 5,288,796 IDR

  • Batam - 5,357,982 IDR (island near Singapore)

You may also like
26/01/2026When is Indonesia Considered Your Tax Resident? We Explain the New Rules

One of the most common fears among foreigners in Indonesia is “What if I am recognized as a tax resident and forced to pay taxes?” At the end of 2025, everything became clearer: the Indonesian Tax Administration approved a new regulation

26/01/2026Halal Certification in Indonesia: Regulations, Deadlines, and Costs for Businesses

Halal certification is the process of obtaining an official document that confirms the compliance of a product or service with Islamic norms (Sharia) and the requirements of Indonesian law. The certificate is required for any business involved in the

12/01/2026PSE - Electronic System Operator: What It Is and Who Needs PSE Registration in Indonesia

What is PSE PSE stands for Penyelenggara Sistem Elektronik, which translates to electronic system operator. Companies and projects offering digital services to users in Indonesia are required to have this legal status. In the business environment,

08/01/2026Work Schedule for January 16

January 16 , many government offices, including immigration offices in Indonesia, will be closed. Our office is closed, couriers are not working, online support is available from 10-00 to 22-00 Bali time. Think about your passports, extensions, and

07/01/2026Villa Deposit in Bali: How a Mistake Turned a Dispute into a Criminal Case

Inadequate Landlord Our client rented a villa in Bali for six months. She lived peacefully, paid on time. According to the contract, she had a deposit equivalent to a month's rent — 25 million rupiahs. When the time came to move out, everything

08/01/2026KBLI 2025: What Has Changed and Why Businesses Shouldn’t Panic

Indonesia’s Central Statistics Agency (BPS) has officially introduced KBLI 2025 , the updated classification of business activities, replacing KBLI 2020 . It’s important to emphasize from the start: the KBLI update is not intended to restrict

05/01/2026BKPM Strengthened Control over LKPM: 'Zero' Reporting Now a Risk Zone for Businesses

At the end of 2025, the Indonesian Ministry of Investment (BKPM) once again clearly stated: LKPM reporting is not a formality, but a corporate obligation. Failure to submit reports or regular 'zero' results may result in administrative measures—from

29/12/2025Work Schedule During New Year Holidays

31.12 — office, couriers and online support work until 15:00 01.01 — office is closed, couriers do not operate, online support is not available on this day. If you have questions, please ask them during working hours. 01.01 Immigration offices across

29/12/2025SP2DK: what it is and when it is issued by the tax authorities

SP2DK is an official request from the tax authority in Indonesia. In the letter, the inspector asks a company or individual to explain discrepancies in reporting or suspicious data. It is not a fine and not an audit, but an important signal that

29/12/2025Tax Revenues in Indonesia Declined. What Should Businesses Prepare For?

The Indonesian economy is slowing down, as stated directly by the Ministry of Finance. By the end of Q4 2025, the annual tax plan was only fulfilled by 66.6%. The state is forced to urgently look for additional sources to replenish the treasury and

24/12/2025Love and KITAS

How Love Almost Ruined a Business? A woman decides to start a company in Bali and run her business, while also inviting her boyfriend and his friend as co-founders since they needed to obtain a KITAS to live on the island. The business is developing,

23/12/2025Important Updates for D12 Visa Holders

The Immigration Office of Indonesia has updated the stay permit information for certain D12 visa holders. If you have recently entered with this visa or are currently in the country with it, please check your dates. To do this, open the ITK

23/12/2025Indonesia Strengthens Control Over Virtual Office (VO). Some NIBs Have Been Annulled

Indonesian authorities have tightened inspections of companies registered with virtual offices (VO). What's Happening Right Now BKPM has placed the use of VOs under increased scrutiny. This week, according to information received, BKPM staff are

22/12/2025Airbnb in Bali in 2026: New Rules, Licenses, and Taxes for Housing Rentals

After reports about a potential ban on Airbnb in Bali, the Indonesian Ministry of Tourism officially confirmed: online platforms are not planned to be closed. The point is for villa and apartment owners in Bali to operate legally, pay taxes, and

Contact us:
PT LEGAL INDONESIA, Jl. Sunset Road No 900A, Kuta, Bali