Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
Vol 15, No 2 (2014): JEP Desember 2014

Regional Minimum Wage and the Increase in the Personal Exemption

Alam, Solihin Makmur (Unknown)



Article Info

Publish Date
01 Dec 2014

Abstract

The policy of the Central Government raised the limit on Income Not Taxable (PTKP) to reduce the income tax burden on workers. At the same time, local governments also raise the Regional Minimum Wage (UMR) in 2013 to customize it with the level of inflation and rising prices. Some people think that the policy of the Central Government to improve the welfare of workers by doing adjustments on PTKP is useless because in fact the increase coincided with increases in PTKP UMR. In 2013, almost all local governments set the UMR under PTKP. Thus, the workers who work in these areas did not have to pay income tax. This condition does not apply to workers who work in areas that have the above PTKP UMR. The workers who work in these areas will not receive earnings as a whole. Thus, the income tax has reduced the level of their well -being.

Copyrights © 2014






Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan is a scientific journal that contains the results of theoretical research and studies on economic and development issues. Managed by Department of Development Economics, Faculty of Economics and Business Universitas Muhammadiyah ...