Museno asks businesses to prepare for the new wage standard
Museno asks businesses to prepare for the new wage standard
JAKARTA (JP): Deputy Governor for Public Welfare Affairs R.S. Museno urged all businesses in Jakarta yesterday to prepare for the new minimum wage standard which will go into effect in April.
"Company owners have to start calculating their budgets bearing in mind the government's new regulation on the minimum wage," Museno said.
The government announced on Jan. 3 that it will raise the minimum wage level by between 10 percent and 35 percent in 19 Indonesian provinces as of April 1. The minimum wage level in Jakarta has increased 21 percent from Rp 3,800 to Rp 4,600 a day.
The level is set for a seven-day or 40-hour working week and is calculated on a 30-day basis. This means that a worker in Jakarta should take home at least Rp 138,000 a month beginning next April, up from Rp, 112,000 at present.
The minimum wage level includes up to 25 percent in allowances, but excludes incentive bonuses.
Purbadi Hardjoprajitno, the Jakarta Chapter Chairman of the Indonesian Employers Association, told The Jakarta Post that businesses should have ample time to make necessary preparations for the new wage standard.
Purbadi added that the unreadiness of many businesses in raising the minimum wage of their employees last year was the main cause of several labor protests.
However, Salam Sumangat, the Jakarta Branch Chairman of All Indonesian Workers Union, said that the increase would not "guarantee" that the number of labor protests or strikes would be reduced.
Freddy Tuamelly, Chief of the Ministry of Manpower's Jakarta office concurred with Salam.
"During recent labor strikes, workers were not fighting for their basic rights like a minimum salary, overtime payments or menstruation leave but rather for various other reasons, such as the right to form a workers union," Freddy said.
Meanwhile, Museno said that the government's decision to increase the minimum wage level was to improve the welfare and living conditions of all workers.
He also said that all businesses in Jakarta that are already paying a basic wage higher than the new minimum are not allowed to cut the current salaries of their workers.
However, Museno said that those companies that cannot fulfill the new minimum wage regulation can apply for "tolerance" to the Ministry of Manpower's office in Jakarta, but he expected that no companies would do so.
Freddy Tuamelly said there are 24,992 companies in Jakarta but only 600 have been listed as members of Apindo. (mas)