Government still undecided on civil servants' wages

Government still undecided on civil servants' wages

JAKARTA (JP): Senior government officials stressed on Tuesday
that no definite decision had been taken on raising civil
servants' wages as earlier reported.

State Minister of Administrative Reform Ryaas Rasyid asserted
that the government had yet to decide on the matter: "So far, the
government has yet to make a decision on whether it will raise
civil servants' wages or not."

Nevertheless he conceded that it was being considered in a bid
to reduce corruption in the bureaucracy.

"Civil servants' wages are very low and they must be raised to
make their wages closer to their daily minimum requirements.
Civil servants' purchasing power must be improved to eliminate
corrupt practices in the bureaucracy," he said.

But separately on Tuesday head of the National Employee
Affairs Agency (BKN) Prijono Tjiptoherdanto gave a more positive
response that the government was carefully focussing on an
equitable system between the top and lower level employees in
possible wage hikes for civil servants.

"In the previous system, there was a big gap in (salary
increase) percentage between the lower and the upper level, which
could be expressed as a ratio of 1:6. Now with an average 15
percent hike, the ratio is around 1:3," Prijono told The Jakarta
Post.

Prijono also added that the planned hike will be given to all
civil servants by Jan. 1, once President Abdurrahman Wahid signs
the presidential decree on the matter.

He also said that the average salary hike will be around 15
percent, not up to 600 percent as previously reported.

"We have a new payroll system in which the basic salary and
allowances are being combined. In the previous system, the basic
salary and other allowances were separate."

In the old system, the lowest ranking civil servant (IA)
receives a total of Rp 415,000 take home pay, he explained.

"With the new system, he or she will get a total of Rp 500,000
per month."

While for the highest ranking civil servant, which is IV E,
the previous basic salary was Rp 500,000 plus additional
allowances which totaled Rp 1.2 million per month, Prijono said.

"Under the new system, an IVE echelon will get a total of Rp
1.5 million. So with this system there will be an equal
distribution among civil servants from the lower to top level,"
Prijono maintained.

Funds for the planned hike would be taken from the existing
state budget, he said.

"With the previous payroll system we spent some Rp 70 trillion
for a total of four million civil servants. With the new system
we only need an additional two trillion or about Rp 72 trillion."

He further said that his office along with related ministries
will also discuss the administrative and salary system for the
National Police since they have already separated from the
Indonesian Military (TNI).

"Actually the Police should be included as members of the
civil service. But since they have different regulations and
ranks, there must be special arrangements and regulations."

"So far the Police's payroll has been handled by the Ministry
of Defense," Prijono said.

Prijono also stressed the need to increase wages as part of
efforts to combat corruption.

"Civil servants deserve better welfare. With the upcoming
regional autonomy, only around one million civil servants will
stay in Jakarta while the others will be handled by the
regions ... so hopefully those in the center can get better
salaries," Prijono added. (edt/rms)