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Jakarta Post

BKN to revise civil servant pay amid budget cuts

  • Newsroom

    The Jakarta Post

Jakarta   /   Sat, November 28, 2020   /   04:34 pm
BKN to revise civil servant pay amid budget cuts President Joko “Jokowi” Widodo (left) presents a draft of the 2021 state budget to House of Representatives Speaker Puan Maharani during a plenary session in Jakarta on Aug. 14. (Antara/Akbar Nugroho Gumay)

The National Civil Service Agency (BKN) plans to alter the compensation of civil servants, in part by simplifying payments into two components: wages and allowances.

The amendment follows up on provisions set out in Articles 79 and 80 of Law No. 5/2014 on the state civil apparatus.

Acting BKN spokesperson Paryono said on Friday that the new scheme would replace pay grades based on rank, class and years of service with compensation based on the value of the position as determined by an assessment.

“The new wage formula will be based on their workload, scope of responsibility and work risks,” Paryono said, as quoted by kompas.com.

In addition, the new scheme will reorganize allowances into two types, one based on performance and the other on the cost of living.

Performance-based allowances will be determined by the results of work evaluations, and the cost of living allowance will be determined by a price index of basic goods where the civil servant resides.

“Every position will be evaluated, and from it, the value of a person’s rank will be measured,” said the acting head of public relations, legal affairs and cooperation.

The evaluation of civil servants is mandated in BKN Chief Regulation No. 21/2011, and the performance assessments are based on Article 3 of Government Regulation (PP) No. 30/2019. The PP requires the assessments to be based on key indicators, which include performance targets, accomplishments, work results, functions and behavior.

However, Paryono was unsure when the new pay grade scheme would be implemented. He said ministries and government agencies were still coordinating on the matter.

The government is seeking to adapt to changes in the state budget as funding for ministries and state bodies is reallocated toward COVID-19 management efforts.

Read also: Bonuses slashed, pay cut: Indonesian nurses fight pandemic, financial hardships

To support business and encourage spending during the pandemic, Government Regulation (PP) No. 23/2020 on the national economic recovery (PEN) was issued.

As of Nov. 22, Rp 695 trillion (US$49.01 billion) had been funneled into crisis response under the PEN program.

Paryono said the government would be very careful in formulating the new payment scheme and that it would use “deep and comprehensive” analyses and simulations.

“We wish to issue a policy on civil servant positions, wages, allowances and facilities that won’t negatively affect their wellbeing or the condition of the state budget,” he said.

The government previously announced that civil servant wages would not be increased in 2021. However, retirees are still eligible to receive year-end bonuses – also known as THR – and the so-called 13th month salary bonus.

Civil servant wages were last increased in 2019, four years after the last salary increase in 2014. (ami)