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JAKARTA, KOMPAS.com – The ratification of the Job Creation Law (RUU) by the House of Representatives (DPR) unleashed a wave of protests from various worker elements.
Several articles regulated in the law are considered detrimental to labor rights. One of them is related to the minimum wage provisions.
In article 89 of Law No. 13 of 2013 on Manpower, regulates how the component of the minimum wage is determined.
In accordance with the provisions of paragraph (1) of the article, the minimum wage consists of the provincial or district / municipal minimum wages and the minimum wages by sectors of the province or regency / area of the city.
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The governor determines the minimum salary, taking into account the recommendations of the Provincial Salary Council and / or the Regent / Mayor.
The stipulated minimum wage is intended to meet the needs of a decent life.
However, the provisions stipulated in the article are eliminated in the Employment Creation Law.
Instead, there is an insertion article in the law, namely articles 88A to 88E.
It was explained that the governor is obliged to set the provincial minimum wage as regulated in article 88C paragraph (1). However, not the district / city minimum wage.
In the provisions of paragraph (2) of the same article, there is only one clause “may determine the district / city minimum wage under certain conditions.”
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However, employers are prohibited from paying wages below the minimum wage that has been determined as regulated in Article 88E paragraph (2).
So what about the amount of salary that will be received?
The determination of the minimum wage is calculated using the minimum wage calculation formula, which contains the variables of economic growth or inflation. The provisions stipulated in article 88D, paragraphs 1) and 2), apply to employees with a period of service of less than 1 year in the company in question.
Meanwhile, in paragraph 1) of article 88B, the size of the salary component is determined based on the unit of time and / or the unit of performance.
It should also be noted that minimum wages are established at the provincial level based on economic and working conditions. Meanwhile, at the district / city level, it is necessary to consider the level of economic growth and regional inflation based on data from the authoritative institution in the field of statistics.
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However, the established district / city minimum wage must be higher than the provincial minimum wage as stipulated in article 88C paragraph (5).
