These are some snippets of the Indonesian law on labour and minimum wages. Continue here to find the current minimum wages in Bali and Indonesia.
Continue here to learn why there is a difference between the blue and red paper when getting a ticket for a traffic violation (don’t ask for the red one!).
Undang-Undang Republik Indonesia Nomor 13 Tahun 2003 Tentang Ketenagakerjaan.
Article 90, Paragraph (1)
Employers are prohibited from paying wages lower than the minimum wage.
Article 185, Paragraph (1)
Any person who violates the provisions referred to in Article 90 Paragraph (1) may be subject to imprisonment of a minimum of 1 (one) year and a maximum of four (4) years and / or a fine of at least 100,000,000 (one hundred million rupiah) and at most 400 .000.000 (four hundred million).
Peraturan Pemerintah Republik Indonesia Nomor 78 Tahun 2015 Tentang Pengupahan.
Article 3, Paragraph (1)
The purpose of the minimum wage policy is to allow a decent living for employees and workers.
Article 26, Paragraph (1)
When an employee is absent due to illness then the following arrangements for salary are to be followed;
- The first four months absent due to illness; 100% of the monthly salary is due.
- The second four months absent due to illness; 75% of the monthly salary is due.
- The third four months absent due to illness; 50% of the monthly salary is due.
- For any following months 25% of the monthly salary is due until the company terminates the work agreement.
Article 26, Paragraph (3)
An employee who is absent for family reasons is entitled to;
- 3 days salary if the employee is absent while getting married.
- 2 days salary if the child of the employee is getting married.
- 2 days salary if the son is circumcised.
- 2 days salary if the child of the employee is getting baptised.
- 2 days salary if the wife has a baby or miscarriage.
- 2 days salary if husband, wife, parents, parents-in-law, children and/or son- daughter-in-law passes away.
- 1 day salary if a family member other than the above, but who lives in the same house, passes away.
Article 55, Paragraph (1)
If an employer does not pay the salary on the agreed payment due date then these are the sanctions for the employer.
- Starting on the fourth day until the eight day there will be a 5% penalty per day late.
- After the eight day, if the salary still isn’t paid, the penalty will increase by 1% per day until maximum 50%.
- If the salary and penalty are still not paid after one month then the outstanding salary will be increased by the interest rate set by the Indonesian Bank.
Sources: Undang-Undang Republik Indonesia Nomor 13 Tahun 2003 Tentang Ketenagakerjaan, Peraturan Pemerintah Republik Indonesia Nomor 78 Tahun 2015 Tentang Pengupahan
