A MODEL OF SETTING REGIONAL MINIMUM WAGES IN AN EFFORT TO ACHIEVE A DECENT STANDARD OF LIVING FOR WORKERS
Abstract
Wages are services that can be considered as workers rights that are received and expressed in terms of money to workers and are paid according to an employment agreement, agreement or statutory regulation. With regard to the issue of wages, in Indonesia the current standard for wage labor is with the provision of minimum regional and sectoral minimum wages. The problem occurs whether the regional minimum wage is able to buy basic needs. What is the right model for setting wage standards to fulfill a decent life in accordance with the mandate of the 1945 Constitution, paragraph 27 paragraph (2). The study uses a normative juridical approach, which is in reviewing and analyzing problems using secondary data in the field of law, in this case the laws and regulations in the field of labor law that regulates wage issues. This research then shows that the minimum wage level cannot meet the needs of a decent worker's life and is still far from the real expenditure of labor adjusted for the level of wages received. In addition to the low purchasing power of the minimum wage for living needs, this survey also proves that the minimum wage is indeed used as a benchmark for wages by employers or has been used as a maximum wage
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