Seeing The Benefits Of An Hourly Wage Scheme

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Ministry of Industry)

JAKARTA - The implementation of an hourly wage payment scheme is considered to encourage increased investment which at the same time has an impact on job creation. This hourly wage system plan will be included in the Omnibus Law on Job Creation, which is expected to strengthen the national economy and Indonesia's competitiveness.

"The hourly wage scheme in the Omnibus Law will boost investment and create new jobs," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Monday, December 30.

According to the Minister of Industry, the hourly calculated wage system is nothing new in the world of labor. This is because a number of countries have used the scheme.

Reporting from the World Population Review website, there are ten countries that provide hourly wages of great value. The ten countries, namely Luxembourg, Australia, France, New Zealand, Germany, the Netherlands, Belgium, England, Ireland and Canada.

Agus emphasized that for the industrial sector, it will still follow the minimum monthly salary pattern. However, industrial supporting sectors, such as the service sector and trade, can take advantage of the application of hourly wages.

"So, the application of this hourly salary is for service workers and part-time workers. For example a consultant. The hourly wage scheme is actually a common practice in developed countries, "he said.

Meperin added, this hourly payment will open up opportunities for companies to provide flexibility to apply their wages. "Actually, this is an option for both companies and workers to determine the most appropriate way of working for them," he added.

Currently, with a fixed salary scheme, workers who enter different numbers of days still get the same salary. Meanwhile, hourly wages are the wages received by workers according to their working hours. "Therefore, it is hoped that it can increase the productivity of our workers," said Agus.

The Minister of Industry also said that the government is paying more attention to the development of human resources (HR) as a priority program. "One of the focuses is to seize opportunities for the momentum of the demographic bonus that Indonesia will enjoy until 2030," he explained.