Wage Policy in Indonesia Based on Government Regulation Number 36 of 2021 and its Economic Aspects

Abstract

Wages are an important element in the employment relationship. In 2021, The Indonesian government has issued Government Regulation Number 36 of 2021 on Wage Policy. The purpose of this wage policy review is to compare the wage provision between Government Regulation Number 78 of 2015 and Government Regulation Number 36 of 2021. The novelty of this study is to find differences in term of wage rules between the previous regulation and the latest ones, and also to examine all of those differences based on both legal and economic aspects; so that, the government will get more complete understanding in carrying out wage policy. Furthermore, the wage policy produced by the government hopefully can creates a positive impact on workers and employers.