Minister urges standardized remuneration system<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Minister of Manpower and Transmigration Jacob Nuwa Wea criticized
\nthe widening wage gap between workers employed in the private
\nsector and those in the public sector and between locals and
\nexpatriates, saying a nationally-standardized remuneration system
\nshould be establishd to eradicate such disparity.<\/p>\n
Speaking to reporters during a visit to Bengkulu on Monday,
\nthe minister said the ratio of wages in the public and private
\nsectors averaged about 1:50 while the ratio of wages between
\nlocals and expatriates could be 1:100.<\/p>\n
Many low-income civil servants and security personnel have had
\nto do other jobs outside their work place to obtain additional
\nincome because their monthly salaries were not adequate to cover
\ntheir spending habits.<\/p>\n
"The unfortunate thing is that many civil servants are still
\nbeing paid below the minimum wage. That is why I am fighting to
\nput forth a national standardized remuneration system," Antara
\nnews agency quoted him as saying.<\/p>\n
Nuwa Wea claimed that the high salaries of expatriate workers
\nhere had also raised envy among local workers.<\/p>\n
He cited for example that with equal capability, an Indonesian
\ncitizen who graduated from the Bandung Institute of Technology
\nwas paid only Rp 6 million per month while expatriates with the
\nsame competence and skills were paid around Rp 60 million.<\/p>\n
"This is a humiliation...," he added.<\/p>\n
The minister also criticized the unfair remuneration system of
\nlarge companies, saying the gross month salaries appeared very
\nhigh but the basic salary was very low.<\/p>\n
"Many employers have given many allowances to give the
\nimpression that their workers are paid high but it is the
\nemployers' trick to pay less taxes and insurance premiums for
\ntheir workers," he said.<\/p>\n
Nuwa Wea said further that a fair remuneration system was
\nstill being enjoyed by certain professions such as legislators
\nand high echelons.<\/p>\n
Jacob said a new standardized remuneration system for workers
\nin private firms, civil servants, police and military officers
\nshould be regulated in a law.<\/p>\n
"We need support to set a new system of remuneration," he
\nsaid.<\/p>\n
The minister also called on the education sector to improve
\nthe quality of their graduates and workers to undergo training
\nprograms to improve their skills in order to be able to compete
\nwith expatriates.<\/p>\n
"We should also concede that certain sectors are still being
\ndominated by foreign workers," he added.<\/p>\n
Nuwa Wea, also the chairman of the Confederation of All
\nIndonesian Workers Union (KSPSI), said that the labor union would
\nput forth a new proposal to the government to exempt workers with
\nmonthly salaries of up to Rp 750,000 from income tax.<\/p>\n
So far, the government has freed workers with monthly income
\nof up to Rp 630,000 from income tax.<\/p>\n
"With the current tax exemption, the government gives a little
\nbit of happiness to workers, but we want workers to be happier by
\nexpanding tax exemptions to the monthly salary of up to Rp
\n750,000," he said.<\/p>\n
According to him, the current tax exemption had been in effect
\nsince early this year following strong protests against the
\nutility prices hikes in January.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minister-urges-standardized-remuneration-system-1447893297",
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"sponsor": "Okusi Associates",
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