While opening the virtual discussion titled "Strategies for Compilation of Wage Scale Structure and Implementation of Safety and Security Management and Law Enforcement" accessed here on Monday, the minister called to implement labor norms, including those related to payment, in the business sector.
"Based on Article 21 of Government Regulation Number 36 of 2021 concerning Wages, the structure and scale of wages is an obligation that must be formulated and implemented by the company by taking into account capabilities and productivity," she explained.
The structure of the wage scale served as a guideline for determining salaries that comprised the composition of wages ranging from the lowest to the highest in a company, she remarked.
Such arrangements must be made in order to achieve fair wages, promote improvement in productivity of the company, and boost the welfare of workers, she affirmed.
Minister Fauziyah also highlighted that the structure of the wage scale was necessary to ascertain salaries and reduce the gap between the lowest and highest wages.
To encourage companies to pursue such move, they are necessitated to include the document while submitting an application for approval and renewal of company regulations and collective work agreements, Fauziyah stated.
In addition, she revealed that only 55,844 companies had formulated and implemented a wage scale structure in their respective companies. To this end, she encouraged more companies to follow suit.
"This figure is certainly expected to continue to increase in future. Hence, it is important for us to be able to increase the number of entrepreneurs, companies, and the community's understanding regarding the structure and scale of this wage," she added.
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Translator: Prisca T V, Mecca Yumna
Editor: Sri Haryati
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