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Inflation cancels out low-income workers’ wage increase: BPS
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Construction workers maneuver a steel rod during the construction of a roof for an office complex in Salatiga, Central Java, in September. (Antara/Aloysius Jarot Nugroho)
S
light increases in low-income workers’ wages failed to compensate for the inflation rate that stood at 0.22 percent in September 2016, the Central Statistics Agency (BPS) reported on Monday.
The daily wage of construction workers nationwide inched up by 0.16 percent — Rp 132 (0.1 US cents) — to Rp 82,480 in September from Rp 82,348 a month before.
Real income, however, dropped by 0.06 percent to Rp 65,768 from Rp 65,810.
“If inflation is uncontrollable, real income will be eroded. For instance, the rise of 0.16 percent in construction workers’ daily wages can’t compensate for the 0.22 percent inflation rate in September,” BPS head Suhariyanto said.
Similarly, the BPS stated that the average daily income of agricultural workers rose slightly by 0.24 percent to Rp 48,235 in September, from Rp 48,120 in the previous month.
However, when inflation was taken into account, real income slumped by 0.08 percent to Rp 37,259 from Rp 37,290.
Despite the stagnant purchasing power among blue collar workers, Suhariyanto said the government, according to Government Regulation (PP) No. 78/2016 on wages, had guaranteed that the minimum wage would increase every year.
“The annual rise of workers’ wages is calculated based on the inflation rate and economic growth,” he said. (win/evi)
