Education Level Significantly Impacts Wages in Indonesia

Jakarta, Indonesia – A worker’s level of education is a primary determinant of their earnings in Indonesia, with significant wage disparities between those with basic education and those with higher qualifications. Data from the Central Statistics Agency (BPS) demonstrates that individuals with college degrees earn more than double the wages of those with elementary school education or less.

Wage Disparities Based on Education Level

According to the November 2025 National Labour Force Survey (Sakernas), the average monthly wage in Indonesia was IDR 3.33 million. BPS data reveals a strong correlation between educational attainment, and income.

Workers holding Diploma IV, S1 (Bachelor’s), S2 (Master’s), and S3 (Doctoral) degrees earn an average of IDR 4.63 million per month. Conversely, those with only elementary school education or less receive an average of IDR 2.22 million per month. This means college-educated workers earn approximately 2.1 times more than those with basic education.

Detailed Breakdown of Wages by Education Level

The positive correlation between education and wages is consistent across all levels:

• Elementary School & Below: IDR 2.22 million per month
• Junior High School (SMP): IDR 2.55 million per month
• Senior High School (SMA): IDR 3.22 million per month
• Vocational High School (SMK): IDR 3.34 million per month
• Diploma I, II & III: IDR 4.53 million per month
• Diploma IV, S1, S2 & S3: IDR 4.63 million per month

BPS emphasizes that “labor wages are positively correlated with the level of education. The higher the level of education completed, the greater the wages received.” This pattern demonstrates an “education premium” in the Indonesian labor market, where increased education directly translates to higher income.

Gender Wage Gaps Within Education Levels

Wage differences also exist between male and female workers at the same educational level. For example, among workers with elementary school education or less, men earn an average of IDR 2.55 million per month, whereas women earn IDR 1.43 million per month.

About Sakernas

The National Labour Force Survey (Sakernas) is conducted by Statistics Indonesia (BPS) and has been a primary tool for monitoring Indonesia’s labor market dynamics since 1986. The survey covers national labor market characteristics of all working-age individuals within sampled households.