The minimum wage is intended to apply only to workers who are in their first year of work, and the wage structure and scale must be applied for all workers after the first year, she explained.
"In many cases, the minimum wage is instead designated as the effective wage, regardless of the work period and productivity in one company. This is clearly an issue that we must address," Fauziyah said during a meeting with Commission IX of the House of Representatives (DPR RI) here Monday.
This factor is responsible for the massive public reaction to the new minimum wage, which is adjusted and announced annually by the government, the minister added.
She said the minimum wage is designated as a safety net for workers, hence, wage structure and scale, relative to their workload and work period, must be applied after workers have worked for more than a year.
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"The minimum wage is intended to be a safety net and is the lowest permissible wage for workers because the minimum wage is intended as a measure to eradicate poverty," Fauziyah remarked.
The minister said that she is currently holding dialogues with business and industry actors to encourage them to apply the wage structure and scale instead of the minimum wage as the effective wage.
Dialogues with workers unions are also ongoing to encourage workers to push their management to implement the wage structure and scale in their companies, she added.
By adhering to the intended purpose of the minimum wage as a safety net, it is hoped that the wage will favor the workers since it will be proportional to their work period and performance, the minister said.
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Translator: Prisca Triferna V, Nabil Ihsan
Editor: Rahmad Nasution
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