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View all search resultsIt would be unfair to use the civil servant salary increase as a pretext to demand a minimum wage hike since the government decided to raise the wage of civil servants, military personnel and pensioners after a four-year moratorium, while the private-sector minimum wage has increased every year.
Labor unions are demanding that the government raise the minimum wage by 15 percent for next year in response to improved economic performance in the country this year, but employers contend that such a wage hike would be impossible given the business situation’s continuing precariousness.
The Labor Party said the formula for minimum wage in the regulation did not follow international standards as the government included “certain indexes” variables that were not stated in the International Labour Organization (ILO).
Business representatives have urged the government to retain the existing minimum wage formula that will result in a much-limited raise in 2023, opposing demands from workers for the government to return to its previous wage calculation.
The Manpower Ministry and the National Wage Council must decide on the level of the rise in the nationwide minimum wage median for 2023 before the end of the third week so that provincial administrations can immediately begin local tripartite consultations for the new minimum wage.
The Confederation of Indonesian Trade Unions (KSPI) is calling on Jakarta Governor Anies Baswedan to appeal a State Administrative Court ruling annulling the city administration’s decision to increase the minimum wage by 5.1 percent.
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