LEGAL & COMPLIANCE · 2026
Minimum Wage Compliance in Bali: What Every PT Company Needs to Know in 2026
All companies operating in Bali, including PT PMA (Penanaman Modal Asing — foreign-owned limited liability company) and PT PMDN (Penanaman Modal Dalam Negeri — domestically owned limited liability company), must ensure that employee wages comply with the applicable minimum wage regulations. This obligation applies when preparing employment contracts, payroll budgets, and annual operating costs.
What Is the 2026 Minimum Wage in Bali?
Effective 1 January 2026, the Bali Provincial Minimum Wage (Upah Minimum Provinsi / UMP) is IDR 3,207,459 per month. However, companies must also check the applicable Regency/Municipal Minimum Wage (Upah Minimum Kabupaten/Kota / UMK) and any relevant Sectoral Minimum Wage (Upah Minimum Sektoral / UMSP or UMSK) before determining the minimum wage for their employees.
For example, the provincial sectoral minimum wage for specified star-hotel businesses in the accommodation and food and-beverage sector is IDR 3,267,693 per month.
Source: Bali Governor’s Decree No. 1011/03-M/HK/2025 (2026 UMP and UMSP); Bali Governor’s Decree No. 1021/03-M/HK/2025 (2026 UMK and UMSK)
Which Minimum Wage Level Applies to Your Company?
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What Is the 2026 UMK for Each Regency and Municipality in Bali?
Four regencies and municipalities in Bali — Badung, Denpasar, Gianyar, and Tabanan — have their own UMK for 2026, each higher than the UMP. The other five regencies (Klungkung, Karangasem, Bangli, Buleleng, and Jembrana) do not have a separate UMK because their calculated rates fall below the 2026 UMP, so the UMP of IDR 3,207,459 applies there.
Where a regency or municipality has no sectoral rate (UMSK) listed, the following applies: Denpasar, Gianyar, and Tabanan use their UMK, while Klungkung, Karangasem, Bangli, Buleleng, and Jembrana use the provincial UMP and UMSP. Sectoral rates should still be checked for the company’s business sector.
Source: Bali Governor’s Decree No. 1021/03-M/HK/2025 concerning the 2026 UMK and UMSK; Bali Governor’s Decree No. 1011/03-M/HK/2025 concerning the 2026 UMP and UMSP. (Note: These figures reflect the decree as of October 2026; verify current rates with the Bali Provincial Manpower Office (Disnaker ESDM) before finalising payroll.)
Key Compliance Points for PT Companies
Source: Law No. 13 of 2003 concerning Manpower, as amended by Law No. 6 of 2023 concerning Job Creation; Government Regulation No. 36 of 2021 concerning Wages, as amended by Government Regulation No. 51 of 2023 and Government Regulation No. 49 of 2025
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Do Micro and Small Businesses Have Special Wage Provisions?
Special wage provisions may apply to qualifying micro and small businesses, subject to statutory conditions. Companies should not assume that they qualify for an exemption solely because of their size or PT status.
Source: Government Regulation No. 36 of 2021 concerning Wages, as amended by Government Regulation No. 51 of 2023 and Government Regulation No. 49 of 2025
Legal Basis (Dasar Hukum)
1. Article 27(2) and Article 28D(2) of the 1945 Constitution of the Republic of Indonesia, concerning the right to work and fair and proper remuneration.
2. Law No. 13 of 2003 concerning Manpower, as amended by Law No. 6 of 2023 concerning Job Creation.
3. Government Regulation No. 36 of 2021 concerning Wages, as amended by Government Regulation No. 51 of 2023 and Government Regulation No. 49 of 2025.
4. Bali Governor’s Decree No. 1011/03-M/HK/2025, concerning the 2026 Provincial Minimum Wage (UMP) and Provincial Sectoral Minimum Wage (UMSP).
5. Bali Governor’s Decree No. 1021/03-M/HK/2025, concerning the 2026 Regency/Municipal Minimum Wage (UMK) and Regency/Municipal Sectoral Minimum Wage (UMSK).
Recommended Action
Every PT company in Bali should verify the applicable regional and sectoral minimum wage, review its payroll and employment agreements, and ensure that employee compensation complies with the relevant regulations. Failure to comply may result in employment disputes and legal consequences.
Frequently Asked Questions
Does minimum wage apply to PT PMA companies in Bali?
Yes. All companies operating in Bali, including PT PMA and PT PMDN, must ensure that employee wages comply with the applicable minimum wage regulations. (Source: Law No. 13 of 2003 concerning Manpower, as amended by Law No. 6 of 2023)
What is the Bali minimum wage in 2026?
The Bali Provincial Minimum Wage (UMP) effective 1 January 2026 is IDR 3,207,459 per month. Companies must also check the applicable UMK and any relevant UMSP/UMSK. (Source: Bali Governor’s Decree No. 1011/03-M/HK/2025)
What is the UMK in Badung, Denpasar, Gianyar, and Tabanan for 2026?
The 2026 UMK is IDR 3,791,002.57 in Badung, IDR 3,499,878.78 in Denpasar, IDR 3,316,798.48 in Gianyar, and IDR 3,287,678.87 in Tabanan. The other five regencies follow the UMP of IDR 3,207,459. (Source: Bali Governor’s Decree No. 1021/03-M/HK/2025)
Does the minimum wage apply to employees who have worked for more than a year?
The minimum wage generally applies to employees with less than one year of service. Employees with one year or more should be paid according to the company’s wage structure and scale. (Source: Government Regulation No. 36 of 2021 concerning Wages, as amended)
Are part-time employees or small businesses exempt?
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Not automatically. Different wage-calculation rules may apply to part-time arrangements, and special provisions may apply to qualifying micro and small businesses subject to statutory conditions. Companies should verify the applicable provisions rather than assume an exemption. (Source: Government Regulation No. 36 of 2021 concerning Wages, as amended)
Can GMS Agency help me check my company’s compliance?
Yes. GMS Agency helps PT PMA owners stay compliant in Indonesia.
Sources: 1945 Constitution of the Republic of Indonesia, Articles 27(2) and 28D(2) · Law No. 13 of 2003 concerning Manpower, as amended by Law No. 6 of 2023 · Government Regulation No. 36 of 2021 concerning Wages, as amended by Government Regulation No. 51 of 2023 and Government Regulation No. 49 of 2025 · Bali Governor’s Decree No. 1011/03-M/HK/2025 · Bali Governor’s Decree No. 1021/03-M/HK/2025 · Kementerian Ketenagakerjaan — kemnaker.go.id. This guide reflects Indonesian regulations as of October 2026. Always verify current minimum wage rates with the relevant authorities.
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