Wage system in a framework of how wages set and defined in order to improve the welfare of worker. The Indonesian government attempt to set a minimum wage in accordance with the eligibility standard of living. The study intend to analize the policy of Local Minimum Wage in Malang City in 2014, its implementation and constraining factors of those Local Minimum Wages. The research uses interactive model analysis as introduced by Miles and Hubermann  that consist of data collection, data reduction, data display, and conclusion.Constraining factors seen at the respond given by relevant actors to the policy such as employer organizations, worker unions, wage councils, and local government. Firstly, company as employer organization does not use wage scale system as suggested by the policy. Secondly, lack of communication forum between company and worker union sounds very high. Thirdly, inability of small and big companies to pay minimum standard wages. Lastly, disagreement and different opinion about wage scale applied between local wage council, employer organization and workers union that often occurs in tripartite communication forum.