Ideality Versus Reality of Minimum Wage in Indonesia’s Labor Law Regulation

The minimum wage is set once a year after preceded by a survey on figures obtained Living Needs (KHL). The Manpower Office together with the Wage Council calcu-lates the KHL value according to the survey results. With the ideality of the compo-nents surveyed, it can classify into five groups: food and beverage groups; fuel and lighting group; housing and equipment groups, clothing groups and other groups. In calculating, the final value of KHL has also considered other factors that influence it such as inflation rates, economic growth, minimum physical needs, company ability and comparison of wage rates in other regions. However, the reality of the facts, especially in the area of Tulungagung Regency, East Java Province, on average the UMK (Regency / City Minimum Wages) as the recent policy of the government only meet around 90% or even less, precisely to fulfill the existing Minimum Living Needs (KHM). So, this raises a fundamental problem, which focuses on the issue of ideality and reality of UMK (Regency / City Minimum Wages) as the recent policy of the government. In order to establish the Regional Minimum Wage Regulation (UMR), which is carried out by the Provincial Government, especially in East Java Province, the basis for consideration is the establishment of Regional Minimum Wages, they are: Minimum Living Needs (KHM), Consumer Price Index (IHK), expansion of employment opportunities, wages in general that apply regionally, the ability, development.