The wage hike formula will induce certainty into the salary system, thereby improving the investment climate and creating new jobs for 7.4 million job seekers in the country, Manpower Minister M Hanif Dhakiri said.
Jakarta (ANTARA News) - The formula-based wage fixation policy that the Indonesian government will soon issue, is aimed at creating more jobs as it will help attract more investment, Manpower Minister M Hanif Dhakiri said.

The wage hike formula will induce certainty into the salary system, thereby improving the investment climate and creating new jobs for 7.4 million job seekers in the country, he said in a press statement released on Friday.

"With more jobs being created, workers and job seekers will have many choices. If they have many choices, their position will become stronger and their welfare will improve. So the wage policy is indeed for the people, both workers and job seekers," he said.

The new wage fixing policy will not only provide protection to workers and job seekers but will also give a sense of certainty to the business world, he said.

The wage policy will also ensure an annual salary hike, he said.

"The wage fixing system as per a formula is a win-win solution. On the one hand, the workers will have certainty about an annual salary hike, while on the other hand, the employers will have certainty about the extent of the annual salary hike. Thus, it will not disrupt their financial planning," he said.

Coordinating Minister for Economic Affairs Darmin Nasution said at the State Palace on Thursday that the government will soon apply a new wage policy with a formula system. The formula is based on inflation and economic growth to calculate annual salary hike.

The new wage policy will be contained in a government regulation on wage system to be signed by the President soon.

Hopefully, the calculation of provincial minimum wages will use the new formula starting next year.(*)

Editor: Heru Purwanto
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