Indonesian Law Regulation No. 13 of 2003
Concerning Manpower
SALARY
Article 90
1. Entrepreneurs shall be prohibited from paying a wage lower than the minimum wage
聽 聽 as meant in Article 98.
2. Entrepreneurs unable to pay the minimum wage as meant in Article 89 can apply for
聽 聽 postponement.
3. Procedures for the postponement as meant in paragraph (2) shall be regulated by a
聽 聽 decree of the minister.
Article 98 stated that:
1. National, provincial and regency/city wage councils shall be established to provide
聽 聽 recommendations, considerations and formulate wage policies to be stipulated by the
聽 聽 government as well as to develop the national wage system.
2. Members of the wage councils as meant in paragraph (1) shall consist of
聽 聽 representatives of the governments, entrepreneur organizations, labor/worker unions,
聽 聽 universities and experts.
3. The President shall appoint and relieve members of the national wage council, while
聽 聽 members of provincial/regency/city wage councils shall be appointed and dismissed
聽 聽 by governors/mayors/regents.
4. Provisions on procedures for the establishment, composition of membership,
聽 聽 procedures for he appointment and relief of members as well as tasks and working
聽 聽 arrangements of the wage councils as meant in paragraphs (1) and (2) shall be
聽 聽 regulated by a presidential decree.
Article 89 stated that :
1.The minimum wage as meant in Article 88 paragraph (3) letter 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 (1) shall be directed to accomplishment of
聽 聽 聽the adequate life need.
3. The minimum wage as meant in paragraph (1) shall be stipulated by governors by
聽 聽 observing recommendations of the provincial wage councils and/or regents/mayors.
4. Components as well as the implementation of phases of accomplishment of the
聽 聽 adequate life need as meant in paragraph (2) shall be stipulated by a decree of the
聽 聽 minister.
Article 88 stated that :
1. Every workers/labor shall entitle to obtain income fulfilling humanely adequate
聽 聽 sustenance.
2. In order to realize the income fulfilling humanely adequate sustenance as meant in
聽 聽 paragraph (1), the government shall stipulates a wage policy protecting workers/labor.
3. The wage policy protecting workers/labor as meant in paragraph (2) shall 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 (3) letter a
聽 聽 on the basis of the adequate life needed by observing economic productivity and
聽 聽 growth.
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