The Bali Observer

Friday, 6 November 2026

Bali’s 2026 minimum wage set at Rp3.21 million per month

Bali’s provincial minimum wage for 2026 has been set at Rp3,207,459 per month under Governor’s Decree No.1011/03-M/HK/2025.

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Editor: Mursyid Sonsang

· Event date: · 5 min read

Denpasar — Bali’s provincial minimum wage (Upah Minimum Provinsi, UMP) for 2026 has been set at Rp3,207,459 per month, effective 1 January 2026, under Governor’s Decree No.1011/03-M/HK/2025 on the Provincial Minimum Wage and Sectoral Minimum Wage for Bali in 2026, according to the provincial government and multiple local media reports.

The 2026 UMP is a provincial wage floor for eligible workers, not an automatic salary for every person working in Bali.

What the Rp3.21 million figure represents

The UMP is the minimum monthly wage set at provincial level and is calculated using a national formula that takes into account inflation, economic growth and labour-market indicators.

According to Bali’s manpower office and the governor’s decree, the 2026 UMP of Rp3,207,459 reflects a 7.04 percent increase on the 2025 UMP.

Local reports and wage summaries note that the 2025 Bali UMP was around Rp2,996,560–Rp2,996,561, so the nominal increase is roughly Rp210,899.

Key published figures:

  • 2026 Bali UMP: Rp3,207,459 per month
  • 2026 Bali sectoral minimum wage (UMSP) for tourism (accommodation and food service): Rp3,267,693 per month
  • 2025 Bali UMP: about Rp2,996,560–Rp2,996,561 per month
  • Increase in 2026 UMP: about Rp210,899, or 7.04 percent

Business-oriented wage guides for Indonesia convert the 2026 Bali UMP to roughly US$190 per month, using prevailing exchange-rate assumptions.

Who must be paid the minimum

Indonesia’s minimum-wage rules distinguish between workers with less than one year of service and those who have worked longer for the same employer.

In national guidance cited by ASEAN-focused labour and payroll analyses, the minimum wage applies particularly to workers who have been employed for under a year, while longer-serving workers may be paid according to the company’s internal wage structure, provided it is consistent with labour regulations.

This distinction matters for employers, employees and foreign residents hiring local staff.

A job offer at or above Rp3,207,459 per month may satisfy the Bali provincial minimum for an eligible full-time worker, but it does not, by itself, describe the full employment package, including overtime pay, allowances, social-security contributions and other contractual benefits.

Working time, overtime and small-business treatment

National labour rules referenced in payroll and human-resources guides describe normal working time in Indonesia as 40 hours per week, typically arranged either as eight hours per day over five days or seven hours per day over six days.

Overtime is generally limited to four hours per day and 18 hours per week, excluding public holidays, and is paid separately from basic wages.

These provisions are distinct from the UMP itself and should not be taken to mean that overtime is included within the Rp3,207,459 minimum figure.

Business guides also note that companies are generally not allowed to postpone payment of the minimum wage, though micro and small enterprises may qualify for specific exceptions defined in law and implementing regulations.

Location, employer and regional rates

Indonesia recognizes provincial minimum wages such as Bali’s UMP, as well as regional and city minimum wages, and sectoral minimum wages in certain industries.

National guidance indicates that when a regional or city wage is higher than a sectoral minimum, the higher local figure applies.

For Bali, the governor’s 2025 decree on the 2026 minimum wage also sets a sectoral minimum wage for the tourism sector at Rp3,267,693, above the provincial UMP.

Because of this layered structure, the Bali UMP should be treated as a baseline rather than a final benchmark for every job in the province.

In practice, the applicable minimum can depend on where the company is registered and operates, the relevant regency or city wage (if any), whether a sectoral minimum applies to the business, and the worker’s length of service.

Employers are advised in local coverage and wage summaries to confirm the official decree, any applicable regional or sectoral minimum wage and the company’s classification before finalizing contracts.

Workers should ask whether the offer is governed by the provincial UMP, a higher local or sectoral rate, or a company wage scale for more senior staff.

Context for 2026

Indonesia’s minimum wages are set by local governments using a formula that incorporates inflation, economic growth, household consumption and labour-market data.

For 2026, Bali’s UMP rose from about Rp2,996,560 in 2025 to Rp3,207,459, and wage-focused outlets note that nationwide minimum-wage increases for 2026 were capped at 10 percent, with Bali’s increase falling below that ceiling.

For both employers and employees in Bali, the central practical issue is the difference between the provincial wage floor and the amount payable under a specific employment relationship.

The 2026 UMP is a starting point for assessing compliance, not a complete answer to questions about seniority, allowances, overtime and the treatment of micro and small businesses under Indonesian labour law.

Sources

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