PENETAPAN UPAH LAYAK BERBASIS HUKUM EKONOMI SYARI’AH: STUDI IMPLEMENTASI PERATURAN PEMERINTAH NOMOR 49 TAHUN 2025 TENTANG PENGUPAHAN DI DAERAH ISTIMEWA YOGYAKARTA TAHUN 2026NIM.: 23203012092M. Wildan FauzbikaauthorWages are a crucial component of the labor system, serving to fulfill workers’ fundamental right to a decent standard of living, as stipulated in Law No. 13 of 2003 in conjunction with Law No. 6 of 2023. However, the policy outlined in Government Regulation No. 49 of 2025 which is oriented toward macroeconomic indicators has shifted the role of the Decent Living Standard away from being a primary variable. This has created a gap between the minimum wage and workers’ actual needs, particularly in the Special Region of Yogyakarta, thereby triggering economic pressure and worker dissatisfaction. Therefore, this study aims to analyze the determination of the 2026 DIY Regional Minimum Wage from the perspectives of Sharia Economic Law, distributive justice, and welfare theory to assess the extent to which wage policies substantively realize justice and welfare. This study employs a qualitative method with a normative-empirical approach through field research. Data were collected through semi-structured interviews with labor unions, employer associations, and the DIY Provincial Social Affairs and Manpower Office, and were supplemented by a review of relevant legislation, data on the Decent Living Standard, and related literature. This study is descriptive-analytical in nature, aiming to describe the conditions surrounding the determination of the Regional Minimum Wage (UMR) and to analyze its alignment with Sharia Economic Law, distributive justice, and welfare theory. Data analysis was conducted qualitatively using an inductive method, which involves interpreting empirical data and relating it to a normative framework to obtain a comprehensive picture of public interest, distributive justice, and the substantive well-being of workers. The research findings indicate that the implementation of the 2026 Regional Minimum Wage (UMR) for the Special Region of Yogyakarta has complied with the principles of Islamic Economic Law in procedural aspects, but has not yet fully realized justice, fair wages, and the substantive protection of workers’ rights. This is evident in the concept of ujrah, where the setting of the minimum wage has met the characteristics of ujrah al-musammā as a wage determined through a legitimate mechanism, but has not yet met the criteria of ujrah al-miṡl because the wage amount does not yet reflect a decent wage standard commensurate with workers’ living needs. From the perspective of distributive justice, this policy tends to be dominated by market logic and macroeconomic considerations, so that wage distribution is not yet based on workers’ actual needs and does not proportionally reflect social justice. Meanwhile, from the perspective of welfare theory, the UMR has not been able to substantively enhance workers’ ability to access education, healthcare, and a decent standard of living, so the resulting welfare remains minimal. These findings highlight the need for wage policies that are more oriented toward a Decent Standard of Living, distributive justice, and workers’ well-being.348.598 Peraturan-Peraturan di Indonesia2026-06-17UIN SUNAN KALIJAGA YOGYAKARTA;FAKULTAS SYARI’AH DAN HUKUMThesis