Introduction

The employment policies belonging to unorganized workers and wages paid to them has been a subject of considerable discussion among union leaders and labor experts. While minimum wages legislation has to be in large extent for being effective in providing protection to employees in the organized sector, with periodic implements according to need for that country. Indonesia has legislation for minimum wage (MW) as regulated under Labour Law Act No. 13 Year 2003 article No. 88,89 and 90. However, there is new Government Regulation No. 8 of 1981 regarding protection of wages. Indonesia is on 7th ranking for having large sectors of modern slavery option for marketing welfare or service sector. Current authority introduces a new formula for provinces to calculate country’s minimum wage under regulation No.78 Year 2015 on wages during early 2016.

The workers in informal sectors are as follows:
A)In the organized sector activities are regulated by legislation, while that in unorganized sector are not regulated.
B)Workers in the organized sector are covered under social security legislation, while they do not cover the unorganized sector.

Laws And Process

Under the Act of providing wages can include everything received in the form of money by the employee. One can also deduct any monetary allowance given for transport, food, etc. from the wages they get. However, the basic wage should not be lower than 75% of total wage. In other words, fixed allowances should not be higher than 25% of the total wage. If the employer provides lodging or offers any equipment for personal use by the employee, this should be written in a contract. The employer may deduct the value of these benefits from the total wages.

THR Keagamaan is the yearly bonus for each and every employee (Expat and Indonesian). Employees receive this bonus at the time of their faith’s major religious celebration. Thus, THR should not be included in the wage to be paid to an employee. The Government is also playing key roles to strengthen the economical as well as the infrastructural growth of country mainly focusing for the welfare of the employees who are easy to serve at very well rate of wages which they got at the specific period of time (mainly weekly).

These are the primary laws for the whole country and below is the list of minimum wages provided by the government for last years (2017) as well as this year (2018) :

maps_indonesia

Minimum Wages Of Provinces

Province
Minimum Wage (Rupiah)
2018
2017
DKI Jakarta
3,648,035
3,355,750
Papua
2,895,650
2,663,646
Sulawesi Utara
2,824,286
2,598,000
Bangka Belitung
2,755,000
2,534,673
Aceh
2,717,750
2,500,000
Papua Barat
2,667,000
2,416,855
Sulawesi Selatan
2,647,000
2,438,000
Sumatera Selatan
2,595,994
2,388,000
Kepulauan Riau
2,563,875
2,358,454
Kalimantan Utara
2,559,903
2,358,000
Kalimantan Timur
2,543,001
2,229,556
Riau
2,464,153
2,266,722
Kalimantan Selatan
2,454,671
2,258,000
Kalimantan Tengah
2,421,705
2,222,986
Jambi
2,243,719
2,063,000
Gorontalo
2,206,815
2,030,000
Sulawesi Barat
2,193,528
2,017,780
Sulawesi Tenggara
2,177,053
2,002,625
Maluku Utara
2,147,022
1,975,000
Sumatera Utara
2,132,187
1,961,354
Bali
2,127,157
1,956,727
Sumatera Barat
2,119,066
1,949,284
Banten
2,099,385
1,931,180
Maluku
2,092,667
1,925,000
Lampung
2,074,672
1,908,447
Kalimantan Barat
2,046,900
1,882,900
Sulawesi Tengah
1,965,232
1,807,775
Bengkulu
1,888,000
1,730,000
Nusa Tenggara Barat
1,825,000
1,631,245
Nusa Tenggara Timur
1,793,715
1,650,000
Java   Barat
1,544,360
1,420,624
Jawa Timur
1,508,894
1,388,000
Jawa Tengah
1,486,065
1,367,000
Yogyakarta
1,454,153
1,337,645

Gender Wage Gap

The gender pay gap is the gap between the salary or wage received by men and women. Man’s wage is higher than woman’s wage because he is expected to take care of his wife and children. While female workers, even when married, are also still considered non-marital. In 2012, the Indonesian workforce numbered 112 million of which 43 million women (Central Bureau of Statistics, BPS). In Indonesia, women represent nearly 38% of the workforce in the civil service. More than a third of the women do domestic work, such as taking care of the nurturing. These jobs are paid relatively lower, and therefore also women overall tend to earn less than men.

Lesser incomes of women in informal wage employment appeared mainly due to the low level of education. However, much of the gender disparity in incomes among women wage workers is explained by imperfections in the labor field market. The gender pay gap project in Indonesia needs to indicate several issues. Mainly, it should focus on Collective Agreements. In the manufacturing sector, our fact-finding from the CBAs makes an inventory of different allowances and secondary facilities such as housing allowance and health insurance. Thus, Government should amend some of the existing laws for the prohibition of this hollow carving act for violating of the minimum wage of the country.

Conclusion

Whether laying down a decent wage for workers is efficient.
Well! The problem is the demand/supply equation and knowledge. There is a vast supply of cheap, and this is what keeps the wages of the domestics low. Therefore the rules would be difficult to implement. However, as domestic workers unions should get stronger, employers may be forced to shell out the required amount of salary. A meaningful wage policy has to include besides a minimum wage fixed at a suitable level, provision for assured employment for a minimum period of time. (employment guarantee scheme). The globalization of the workers, a mere national floor level of wages is not enough to protect all the workers. While the existing legal provision enhances the government’s scheme to protect organized sector wages with periodic revisions, the unorganized workers would only be static at a constant number.

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