• Salary Structure Submission to Indonesia Government
Newsletter:

Salary Structure Submission to Indonesia Government

31 October 2017

Change in Indonesia Law – Salary Structure Submission to Indonesia Government

Regulations

  1. Law Number 13 Year 2003 Concerning Employment;
  2. Government Regulation Number 78 Year 2015 Concerning Payment;
  3. The Decision of the Ministry of Manpower and Transmigration Number KEP.49/MEN/IV/2004 Concerning Conditions of the Structure and Scale of the Salary;
  4. Regulation of the Ministry of Manpower Number 1 Year 2017 Concerning the Structure and Scale of the Salary.

Definitions

  • Salary Structure: is the composition of the wages from the lowest to the highest or from the highest to the lowest.
  • Salary Scale: is the range of nominal wages, from the lowest to the highest for each class position;
  • The Structure and Scale of the Salary is the composition of the wages from the lowest to the highest or from the highest to the lowest which includes the range of nominal wages from the lowest to the higest for each class position;
  • Position is a grouping of position based on value/quality of the position.

Procedures

According to Regulation of the Ministry of Manpower Number 1 Year 2017 Concerning the Structure and Scale of the Salary, the Salary Structure shall be arranged by the Company with regards to the grouping of positions, duration of employment, educations, and competence. The Salary Structure shall be appointed by the management of the Company in the form of Decision Letter and shown to the Officials in the Ministry or Provincial Service or District/Municipals Office which administer government affairs in the field of employment.

The Salary Structure shall be listed when the Company is applying for:

  1. The Authentication and Renewal of Company’s regulation; or
  2. The Registration, Extension, and Renewal of the Letter of Agreement.

Deadlines of the Submission

The Company shall arrange and implement the Structure according to the Regulations of the Ministry of Manpower Number 1 Year 2017 Concerning the Structure and Scale of the Salary, no later than October 23, 2017.