"They need not stage rallies any longer because they have received minimum wages. Don`t forget that the wages will be increased by a minimum of 10 percent every year," Kalla said.
Jakarta (ANTARA News) - Vice President Jusuf Kalla has stated that workers should no longer resort to staging rallies to demand salary hikes following the issuance of economic policy packages.

"They need not stage rallies any longer because they have received minimum wages. Dont forget that the wages will be increased by a minimum of 10 percent every year," he said at his office here on Friday.

He stressed that development programs need social and political stability.

"We dont want employers and employees to have different views throughout the year. Clear regulation is needed to serve the interests of both employees and employers," he said.

The formula to arrive at official decent living standards (KHL) has long been discussed. The current labor wages are considered to be sufficient and have come closer to the official decent living standards, he said.

In cases where the labor wages still fall short of the official decent living standards, these will be increased, he said.

"Admittedly, their (effective) income is reduced by inflation every year. Thats why we raise the income by adding inflation (allowances) and productivity bonuses," he said.

On Thursday (Oct 15), the government announced a policy of improving workers welfare through fair, simple and well projected waging system and a workers housing and flat development program.

Coordinating Minister for Economic Affairs Darmin Nasution said on Thursday that the minimum wage policy based on a simple formula will prevent workers from falling prey to lower wages while at the same time allowing employers to have a sense of certainty.

He said the formula for arriving at worker wages next year will be this years minimum wages plus inflation and economic growth rates.

Citing an example, he said if this years inflation and economic growth rates are recorded at 5 percent respectively, next years minimum wages will be this years minimum wages plus 10 percent of this years minimum wages.(*)

Editor: Heru Purwanto
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