Struktur dan Skala Upah
A system for setting wages based on company capability and productivity.
Definitions (2)
Struktur dan Skala Upah (Wage Structure and Scale) is a systematic framework that employers are mandated to establish and use as a guideline for determining the wages of their employees. This framework is designed to ensure fairness and consistency in remuneration within a company. According to the Job Creation Omnibus Law, the development of this wage structure and scale must consider the company's financial capacity and the productivity of its workforce. It serves as a crucial tool for employers to set wages in a transparent and equitable manner, moving beyond previous considerations like job grade, position, length of service, education, and competence, to focus more on performance and company sustainability.
Struktur dan Skala Upah, or Wage Structure and Scale, is a mandatory system that employers must establish and implement to determine wages based on job position, work period, education, and competence. This system ensures fairness and transparency in remuneration within a company, particularly for employees with one year or more of service, and must be reported to the Ministry of Manpower.