Application Of Hourly Wages Cannot Be In All Fields

Illustration. (Photo: Pixabay)

JAKARTA - The Indonesian Employers' Association (APINDO) is of the opinion that the application of the hourly wage system cannot be implemented in all types of work, especially in industries in the service sector. However, Apindo's head of public policy, Sutrisno Iwantono, said that hourly wages are fair enough for both parties under certain conditions, because workers are paid according to working hours.

"There are types of work that can use hourly wages, some are not. This system is difficult to apply to companies that are not engaged in production, such as hotels, ”he was quoted as saying on Tuesday, December 31st.

If the middle occupancy rate is high, then it is unfair for hotel workers to be paid according to the hour only. In addition, hourly wages will be detrimental to workers who are in need of a leave of absence from work.

With an hourly wage system, wages are no longer a fixed cost, but change into a variable cost. Meanwhile, the variable cost may go up or down, depending on the volume of production. However, fixed costs will not change even if production increases or decreases.

"For jobs where it is impossible to apply a wage system, it is necessary to think of other alternatives," continued Sutrisno.

Previously, the Minister of Industry, Agus Gumiwang Kartasasmita, assessed that hourly wages would spur an increase in investment, because it matched the needs of investors. The discourse on this wage scheme will be included in the Omnibus law Job Creation Bill.

"The hourly wage scheme in the Omnibus Law will boost investment, create new jobs," said Agus.

He argues that the hourly wage system is nothing new in the world of work. Many countries have implemented this scheme. Some that provide high-value hourly wages include Luxembourg, Australia, France, New Zealand, Germany, the Netherlands, Belgium, England, Ireland and Canada.

However, Agus said that the application of the hourly wage scheme can only be used for industrial support businesses, such as consultants or part-time workers. Meanwhile, the industrial sector will continue to follow the monthly minimum salary scheme.

“Hourly wages for service and part-time workers. For example a consultant. This is an option for both companies and workers to determine the right way of working for them, ”continued Agus.