Wage Subsidy Rules Revised, Workers Earning Up to Rp3.5 Million Can Get Subsidy

Jakarta: The Ministry of Manpower has issued Minister of Manpower Regulation (Permenaker) No. 16 of 2026 on the Second Amendment to Permenaker No. 10 of 2022 on Guidelines for Providing Government Assistance in the Form of Wage Subsidies for Workers.

The regulation sets out the eligibility requirements, wage cap, and amount of the 2026 Wage Subsidy Assistance (BSU). Permenaker No. 16 of 2026 was sign and published in Jakarta on October 28, 2026, and took effect on the date of promulgation.

Minister of Manpower Yassierli said the BSU policy is part of the government's efforts to maintain workers' purchasing power while supporting the continuity of economic activity.

"The government wants to ensure this policy helps workers meet their living needs. That is why the assistance is provided in accordance with the established requirements and regulation," Yassierli said in an official statement, as reported by Antara on Friday, October 30, 2026. Wages up to Rp3.5 million per month Under the regulation, workers eligible for the BSU must be Indonesian citizens with a Population Identification Number (NIK), be registered as active participants in BPJS Ketenagakerjaan's employment social security program as of August 2026, and earn a wage of no more than Rp3.5 million per month or the equivalent of the provincial or regency/city minimum wage (UMP/UMK).

The wage used as the reference is the most recent wage reported by the employer to BPJS Ketenagakerjaan and recorded in its data. The wage components taken into account include the basic wage and fixed allowances.

For workers in areas where the regency/city minimum wage (UMK) exceeds Rp3.5 million, the wage cap is adjusted to the UMK, rounded up to the nearest hundred thousand rupiah. Meanwhile, for workers in areas that do not set a UMK, the wage cap refers to the provincial minimum wage (UMP), using the same rounding mechanism.

The regulation also states that the BSU will not be given to civil servants (ASN), members of the Indonesian Military (TNI), or members of the Indonesian National Police (Polri).

The 2026 BSU will be provided at Rp300,000 per month for three months, paid all at once sum of Rp900,000. For information and updates on the 2026 BSU, check the Ministry of Manpower's official channel at bsu.kemnaker.go.id.

(Yaumil Tianri Rahmi)