Bali Workers Slowly Uniting to be Paid a Decent Living Wage
NusaBali reports that Bali’s Badung Tourism Workers Union (Serikat Pekerja Pariwisata) hopes the upcoming formulation of Bali’s 2027 Provincial Minimum Wage (UMP) and Regency/City Minimum Wage (UMK) will set wage levels that allow its members a reasonable and decent standard of living (KHL).
Moreover, the tourism union hopes next year’s minimum wage will fall within 90–95 percent of the government-determined KHL.
The current official minimum wage is about Rp two million less per month than economists calculate is needed to maintain a reasonable standard of living in Bali.
Slamet Suranto, Chairman of the Badung Regency Tourism Workers Union Federation (FSP Par SPSI), stated on Monday, 14 September 2026, that workers are still awaiting the formula the government will use to set the 2027 UMP and UMK. “We hope that, whatever the regulations, the figure comes as close as possible to the KHL in Bali,” Slamet said.
According to Slamet, the standard-of-living calculation the government used as a reference last year was around Rp 5.2 million per month. However, that figure is not the benchmark for the 2027 UMP or UMK, as the latest KHL value is still awaiting a precise government determination from the Central Statistics Agency (BPS). If the latest KHL rises, workers’ expectations will adjust accordingly.
”If it could be 100 percent, that would be great. But if that isn’t possible yet, then a UMK/UMP that is at least close to 90–95 percent of the current KHL,” he said. He noted that under the previous wage scheme, wage increase calculations accounted for inflation and economic growth, then multiplied them by an “alpha factor.” The alpha value is one component used to determine any wage increase.
For the 2027 determination, the unions are still awaiting official government regulations. If the mechanism reverts to a similar formula, they will advocate for an alpha factor that yields wage increases closer to the KHL.
Slamet believes the KHL figure of around Rp 5.2 million can still serve as a reasonable estimate of a single worker’s needs with one year of employment experience. However, workers with families and longer tenures will certainly need more. “For single workers or those with only one year of experience, I think Rp 5.2 million is quite good. But for those who aren’t single and have worked longer than a year, there needs to be an increase,” Slamet explained.
Continuing, Slamet pointed out that the minimum wage is essentially a baseline for workers meeting specific criteria. Therefore, workers with longer tenures should ideally be subject to a different wage structure and scale. In Bali’s Badung Regency, companies monitored by the labor union have generally implemented the Regency Minimum Wage (UMK), although issues with tenure-linked wages persist.
”Regarding the UMK, the companies we monitor have indeed implemented it. However, the issue of exactly who the UMK applies to remains a matter requiring further attention,” he said. The union acknowledges that some companies—particularly those unmonitored or without a labor union—may not fully comply with minimum wage requirements.
Regarding a company’s ability to pay wages closer to the Decent Living Needs (KHL) standard, Slamet believes the business sector’s capabilities must be viewed proportionally. Companies that continue to operate and grow should, in his view, also improve their workers’ welfare. “Wages shouldn’t be viewed as a burden. Wages are a form of appreciation for workers, enabling them to perform even better, which in turn leads to greater company success,” he stated. The Badung Regency Labor Union is awaiting official government regulations on the 2027 Provincial Minimum Wage (UMP) and Regency Minimum Wage (UMK) formulas before deciding its next steps in Wage Council discussions.
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