Part 2 - MK Decision on Employment: Key Changes on Weekly Rest and Wages

Get an understanding of the changes in the provisions regarding weekly rest and wages based on the Constitutional Court Decision No. 168/PUU-XXI/2023.

1. MK affirms weekly rest for workers, namely (i) 1 day for 6 working days in a week, and (ii) 2 days for 5 working days in a week.
2. Wage policies set by the Central Government must involve the Regional Wage Council.

Through Decision No. 168/PUU-XXI/2023, the MK affirms and amends a number of provisions Job Creation on employment cluster, among others weekly rest for worker and the involvement of local governments in wage policy.

Regarding weekly rest, MK added a type of weekly rest, which includes (i) 1 day for 6 working days in a week, and (ii) 2 days for 5 working days in a week. This provision has actually been regulated in Government Regulation No. 35 of 2021. However, it seems that MK aims to provide affirmation and clarity for both workers and employers regarding the worker rights, which must be adhered to by both parties.

In addition, MK also requires certain companies to provide long leave to their workers, which are further regulated in work agreements, company regulations, or collective labor agreements.

MK also stipulated that the wage policy set by the Central Government must involve the Regional Wage Council, which consists of representatives of regional governments. This council will formulate a wage policy that becomes a reference for the central government in determining the national wage policy.

Previously, Regional Governments were not involved in the wage policy. For now, Regional Wage Council is involved to ensure that policies are in line with local needs and support workers’ right to a decent living.