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n a move to boost the welfare of labor, the Manpower and Transmigration Ministry has revised a guideline normally used to determine the minimum wage for low-income workers.

The decision, however, met opposition from labor unions, which considered the revision to be not sufficient enough to strengthen their economic position. At the same time, employers also protested the revision, saying they had not yet given their approval.

The revised Ministerial Decree No. 17/2005 on wages was signed on July 9 by Manpower and Transmigration Minister Muhaimin Iskandar and laborers were expected to have enjoyed the wage increase by January 2013.

“I have signed the revised decree and it has been handed over to the Law and Human Rights Ministry for codification,” the minister said after a recent hearing with lawmakers.

Through the revision, the ministry added 14 to the existing 46 components normally used to determine the level of laborers wages.

Muhaimin said the revision was made after input from numerous groups including labor unions, employers, the National Tripartite Institution and the National Wage Council.

The 60 components will be a reference for local administrations in all 33 provinces to determine the index prices before setting the provincial minimum wages by the end of the year. Among the additional components are socks (four pairs in 12 months) and combs (two in 12 months).

Muhaimin reminded employers, labor unions and provincial administrations of the importance of the revision. He added the revised decree served as a measuring tool to determine decent pay for workers in the formal sector.

“The provincial minimum wage is only a social safety net and employers should pay their workers higher than that. No employers are allowed to pay workers lower than this level for the sake of justice, humanity and productivity,” he said.

According to Muhaimin, the provincial minimum wage is effective only for single workers with less than a year’s employment. The real wage for married workers with many years of employment has to be set through bipartite bargaining and documented in labor agreements (PKB).

Labor unions opposed the revision, saying they would not give a significant increase in the provincial minimum wage.

The Confederation of Indonesian Workers Unions (KSPI) president Said Iqbal said that the inclusion of the 14 new minor wage components would not increase workers’ monthly income drastically and would also not improve their purchasing power because main components, such as calories, meat, fresh fish, house rent rates and clothes had not been reviewed.

Separately, the Indonesian Employers’ Association (Apindo) deputy chairman Djimanto said Apindo was disappointed with the minister, who had signed the decree while the review was still in process.