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BizGuru.me – Provide salaries or wages is the responsibility of the company for each employee. The amount of salary given is also strictly regulated and has a minimum wage value. This is important, so the company or employees can exercise their rights and obligations in a balanced way.
In Indonesia itself, the term regional minimum wage (UMR) is certainly not a foreign term for business owners or employers. The value of the UMR must be obeyed so that employees can live properly in the region. The calculation itself is carried out carefully by the Region Salaries Council.
In fact, if you discussed further, there are several important points that must be observed, especially for those of you who manage a business or employer. What are the important points? Discover the full explanation below.
Mechanism for fixing the value of the minimum wage
In the regional context, the first thing to do is the formation of a team of investigation by the local salary council composed of unions, employers, businesses and neutral parties of the university. In short, this team will examine the prices of basic necessities and the minimum cost of living in the region.
The variables that have been considered in the determination of the minimum wage were the results of the investigation by this team and considerations of productivity, economic growth, the most disadvantaged companies, labor market conditions and other considerations. salary council. The minimum wage is determined by the regional head, no later than 60 days before its entry into force on 1 January of the following year.
Employee Rights
Every human being has the right to a decent and good life. In order to guarantee the class of employees and workers, the lower wage rates in each region were then defined. Ideally, the stipulated pay value can become a rule for companies to provide or offer salaries to their employees.
The determined value will be a reference to prevent companies from offering or giving wages lower than the value prepared according to the living life standard. In this way, employees or workers can be guaranteed their eligibility for life by having a permanent job.
The employer must obey
The wages set by the government and the wage counsel have been examined in detail to produce fair value. For this reason, the company or the employer must comply with the agreement. In the applicable regulations, there are strict sanctions for companies that do not comply with this agreement.
However, wages are called net minimum wages and raw minimum wages. The basic difference is for the first time the minimum wage value given for the base salary, excluding compensation and other variables. Although the second is fully implemented, the base salary is included with other variables. This should be clearly written on the employment contract or similar document so as not to cause potential problems in the future.
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Still in place
It is important that employers understand this. Since the value of wages is determined according to economic conditions, it is very natural that every year increases each year. Although it does not matter, this stable salary increase should be particularly worrying for businesses so as not to disrupt the financial situation in general.
Naturally, each year on the workers’ side will submit recommendations in various forms to consider in calculating the lower limit of wages. What needs to be recalled, regardless of the recommendation, the lower limit of wages will always increase, regardless of the amount. It is about ensuring the well-being of employees and workers, because the cost of living also increases.
Clear calculations and delivery
Receiving wages or salaries in the form that has been mutually agreed in the work agreement is the right of the worker. In the case of the delivery of wages, the employer should ideally provide clear details on the calculations and submit in a good way. For information that affect the amount of employee salaries can be understood by those concerned.
The mechanisms used now vary. One of the most popular is the use of a payroll application or integrated human resource management application so that it can calculate and transmit wages in detail. By using the help of this type of application, companies no longer need to make mistakes to calculate or transmit each employee.
Modernization that affects the field of human resources management is now more and more sophisticated. The base used as a database can also be used for various purposes so that all your administrative work can be integrated. Indeed, the existing data is very complete, in order to manage employee administration, companies do not need the trouble to search for data.
