SALARY (Jakarta)

Indonesian Law Regulation No. 13 of Protected content

Concerning Manpower

SALARY

Article 90

1. Entrepreneurs shall be prohibited from paying a wage lower than the minimum wage
as meant in Article 98.

2. Entrepreneurs unable to pay the minimum wage as meant in Article 89 can apply for
postponement.

3. Procedures for the postponement as meant in paragraph Protected content be regulated by a
decree of the minister.

Article 98 stated that:

1. National, provincial and regency/city wage councils shall be established to provide
recommendations, considerations and formulate wage policies to be stipulated by the
government as well as to develop the national wage system.

2. Members of the wage councils as meant in paragraph Protected content consist of
representatives of the governments, entrepreneur organizations, labor/worker unions,
universities and experts.

3. The President shall appoint and relieve members of the national wage council, while
members of provincial/regency/city wage councils shall be appointed and dismissed
by governors/mayors/regents.

4. Provisions on procedures for the establishment, composition of membership,
procedures for he appointment and relief of members as well as tasks and working
arrangements of the wage councils as meant in paragraphs Protected content (2) shall be
regulated by a presidential decree.

Article 89 stated that :

1.The minimum wage as meant in Article 88 paragraph Protected content a shall consist of:

a. The minimum wage by provinces or regencies/cities;
b. The minimum wage by sectors in provinces or regencies/cities

2. The minimum wage as meant in paragraph Protected content be directed to accomplishment of
Protected content adequate life need.

3. The minimum wage as meant in paragraph Protected content be stipulated by governors by
observing recommendations of the provincial wage councils and/or regents/mayors.

4. Components as well as the implementation of phases of accomplishment of the
adequate life need as meant in paragraph Protected content be stipulated by a decree of the
minister.
Article 88 stated that :

1. Every workers/labor shall entitle to obtain income fulfilling humanely adequate
sustenance.

2. In order to realize the income fulfilling humanely adequate sustenance as meant in
paragraph (1), the government shall stipulates a wage policy protecting workers/labor.

3. The wage policy protecting workers/labor as meant in paragraph Protected content include:

a. Minimum wage;
b. Overtime wage;
c. Wage due to absence because of certain reason;
d. Wage due to execution of other activities outside their jobs;
e. Wage due to exercise of their rights to working rest;
f. Model and method of payment of wage;
g. Fine and discount of wage;
h. Matters included into wage
i. Structure and scale of proportional wage;
j. Wage for paying severance pay; and
k. Wage for calculation of income tax

4. The government shall stipulate the minimum wage as meant in paragraph Protected content a
on the basis of the adequate life needed by observing economic productivity and
growth.

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