Indonesia sets 2026 wage subsidy rules and regional salary limits
Eligible workers will receive Rp900,000 in a single payment, with income ceilings adjusted to reflect regional minimum wages.
Indonesia’s Ministry of Manpower has issued revised rules for its 2026 wage subsidy programme, setting a monthly salary ceiling of Rp3.5 million, with adjustments linked to regional minimum wages. Eligible workers will receive Rp300,000 a month for three months, paid together as Rp900,000.
Manpower Minister Regulation No. 16 of 2026 was adopted and promulgated in Jakarta on 28 October 2026, taking effect that day. It is the second amendment to Regulation No. 10 of 2022, which governs government wage subsidy assistance for workers.
Recipients must be Indonesian citizens, hold a population identification number and be registered as active participants in the BPJS Ketenagakerjaan employment social security programme through August 2026. Civil servants, military personnel and police officers are excluded.
For areas where the district or city minimum wage exceeds Rp3.5 million, the eligibility ceiling follows that minimum wage, rounded upwards to a full hundred thousand rupiah. Areas without a district or city minimum wage use the provincial minimum wage, applying the same rounding method.
The ministry said eligibility is assessed using the latest wage reported by the employer and recorded by BPJS Ketenagakerjaan. The calculation includes basic pay and fixed allowances.
In a ministry statement cited on 30 October 2026, Manpower Minister Yassierli said the programme was intended to help workers meet living costs, preserve purchasing power and support economic activity.
