Civil Servant Salaries Unchanged for Two Years: What to Expect in 2027?

The basic salary of civil servants (PNS) has not increased since the last adjustment in 2024, which was enacted through Government Regulation (PP) Number 5 of 2024 dated 26 January 2024. This means that for two consecutive years, the basic salary received by PNS has remained stagnant. The 8% increase in 2024 itself only occurred after three prior years without any change. Over the past decade, salary increases have been minimal, occurring only three times: a 5% rise in 2015, another 5% in 2019, and the 8% increase in 2024. With this record, the question arises whether there will be a salary increase in 2027. Referring to the updated 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) document, which serves as the embryo of the 2027 State Budget Draft (RAPBN), there is no specific mention of a plan to increase civil servants’ basic salaries. However, in the section on the direction of personnel expenditure policy for 2027, the administration of President Prabowo Subianto has ensured that the personnel budget will be designed to maintain the purchasing power and welfare of PNS, who are part of the State Civil Apparatus (ASN), as well as the Indonesian National Armed Forces (TNI) and the Indonesian National Police (Polri). The document states that the government will maintain the purchasing power and welfare of ASN, TNI, Polri, and retirees, among other measures, by providing holiday bonuses (THR) and the 13th salary, while maintaining budget efficiency and considering fiscal sustainability. Once the 2027 State Budget Draft is finalised by the government and the House of Representatives (DPR), the government will announce all policies regarding the basic salaries of PNS, as in previous years. Typically, signals regarding whether salaries will increase are announced directly by the head of state during the Presidential Address introducing the RAPBN and its Financial Note every 16 August. If the basic salary of PNS does not change in 2027, the amounts will remain as follows: PNS Group I ranges from Rp 1,685,700 to Rp 2,901,400; Group II from Rp 2,184,000 to Rp 4,125,600; Group III from Rp 2,785,700 to Rp 5,180,700; and Group IV from Rp 3,287,800 to Rp 6,373,200.