"The objective behind this wage formula is to increase employment opportunities as wide as possible for workers and laborers and to improve their welfare," Chief Economic Minister Darmin Nasution noted here on Thursday.
He shed light on the governments policy on the minimum monthly wage, through a simple formula ensuring that workers would not receive a low salary; while on the other hand, the policy also offers certainty to the employers.
"The minimum wage will increase every year at a measured rate," Nasution revealed.
He said the formula for the salary hike next year is based on the monthly wage this year plus a percentage increase based on the rate of inflation and economic growth.
Nasution cited an example that if the inflation and economic growth this year are respectively five percent, the minimum monthly wage next year will be the amount of this years minimum monthly wage plus 10 percent of this years monthly salary.
He noted that for the time being, this formula cannot yet be applied in eight provinces as they still need a five-year transitional period before they can implement it.
In the meantime, Manpower Minister Hanif Dhakiri pointed out that the government is now preparing a draft government regulation on the new wage system.
"We hope the government regulation would soon be signed and implemented next year. Once it is already signed, the regional government heads are obligated to implement it," Minister Dhakiri emphasized.
Improving the welfare of workers is an important element to improve the prosperity of the people in general. To this end, the state should also play a role in improving the welfare of workers.
The governments role in this case is providing a safety net through a minimum wage by implementing a formula system, which will ensure that workers and laborers do not get trapped in a cycle of low wage.
With the system in place, the monthly minimum wage of workers will increase every year based on a measured rate, he added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
