ANALYSIS OF REGIONAL MINIMUM WAGE DETERMINANTS IN CENTRAL JAVA

Wages are important for workers and their families to meet their clothing needs. The minimum wage is the government's determination of the lowest limit that employers should pay to workers for a given period. It is a standard to protect workers from paying poverty wages and to ensure that workers receive fair compensation for their work. . With the minimum wage, the government aims to avoid exploitation of labor and ensure that workers receive sufficient wages to meet their basic needs.The purpose of this study is to identify the factors that influence the regional minimum wage in Central Java. The data used is secondary data from BPS and uses SUR (Seemingly Unrelated Regression) panel model. The results of this study found that Gross Regional Domestic Income, Labor Productivity, Human Development Index and Labor Force Participation Rate have a positive effect on the Regional Minimum Wage in Central Java.