Employers
Following President Prabowo Subianto's signing of the national minimum wage regulation on December 16, 2025, West Java Governor Dedi Mulyadi will announce the provincial minimum wage (UMP) and regency/city minimum wages (UMK) for 2026 on December 24. Negotiations continue with unions pushing for higher increases to address disparities, while employers seek balance.
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The government has decided to negotiate solely with the UGT and CCOO unions on the 2026 minimum wage (SMI) increase, after realizing it cannot count on the CEOE and Cepyme employers' associations. Experts propose a 3.1% rise if it remains exempt from IRPF tax, raising it to 1,221 euros monthly in 14 payments, above 60% of the average salary. This deal aims to cover inflation and prevent companies from offsetting the increase through salary supplements.