"In terms of work relations, the Job Creation Law has regulated well how work relations are based on the (length of contracts), and there we guarantee that contract workers are also given social protection," she informed at the “2023 Indonesia Economic Outlook Program — Maintaining Economic Resilience through Structural Transformation,” which was accessed online on Wednesday.
In relation to salary issues, the Job Creation Law has set the minimum wage as a safety net and introduced productivity-based wages for workers with more than one year of service.
In relation to the social security aspect, the ministry is trying to increase worker protection against the risk of job loss by introducing a new social security system, namely, job loss insurance.
"This is not really familiar yet, but its implementation has been going on since April 2022. Workers who have lost their jobs, who have experienced lay-offs, are guaranteed a job loss guarantee," she informed.
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Fauziyah said that the job loss guarantee is the first step to developing a lifelong learning system regulated in Articles 25 and Article 30 of Government Regulation Number 37 of 2021 about Job Loss Guarantee services through the employment of information systems.
Under the guarantee, Social Security will provide the most cash for 6 months, which will amount to 45 percent of the wages in the first 3 months and 25 percent of the wages in the next 3 months.
The ministry is also pushing for the establishment of workers' health facilities at companies. This includes the allocation of government assistance for overcoming several conditions that affect workers' ability nationally.
"In 2020, 2021, 2022, we gave wage subsidy assistance as a form of the state's presence in conditions in which workers experience power problems. The government is also present by providing wage subsidy assistance," Fauziyah informed.
It also pursued social dialogue through the empowerment of the relevant stakeholders in formulating policies and solving problems related to manpower issues.
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Translator: Kuntum Khaira R, Mecca Yumna
Editor: Suharto
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