Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Equal Remuneration Convention, 1951 (No. 100) - Indonesia (Ratification: 1958)

Article 1(a) of the Convention. Definition of remuneration. The Committee notes that section 11 of Government Regulation No. 78 of 2015, on Wages refers to an equal “wage” for work of equal value, and that pursuant to section 1(1) “wage” is being received in monetary form as compensation from the business owner or employer to the worker, including the benefits for the worker and his or her family for the job or service performed. It notes, however, that the Regulation also refers to a “decent income” which comprises a “wage” and a “non-wage income” (section 4(2)), and that “wage” contains basic wages and fixed and variable allowances (section 5(1)) while “non-wage income” can include religious holiday allowances, or bonuses, compensation for working facilities and/or service charges for particular businesses (section 6). The Committee had also previously noted that the term “wage” under section 1(30) of Law No. 13/2003, concerning Manpower did not include honorariums, tips or company profit shares. The Committee emphasizes that the principle of the Convention applies to all forms of remuneration, including religious holiday allowances, bonuses, monetary compensation for working facilities and/or service charges, as well as honorariums, tips and company profits. Therefore, for the purposes of Article 1(a) of the Convention, the term “remuneration” should be defined broadly and should include not only the ordinary, basic or minimum wage or salary, but also any additional emoluments whatsoever payable directly or indirectly, whether in cash or in kind, by the employer to the worker and arising out of the worker’s employment. The Committee asks the Government to indicate how it is ensured in practice that the principle of equal remuneration for work of equal value applies to all forms of remuneration, including wage and non-wage income and any additional emoluments, whatsoever, payable directly or indirectly, whether in cash or in kind, by the employer to the worker and arising out of the worker’s employment. The Committee also asks the Government to consider taking steps to fully reflect the definition of “remuneration” under Article 1(b) of the Convention in subsequent amendments to the national legislation, at the earliest opportunity.

Article 2(a). Discriminatory provisions. The Committee notes the Government’s indication that following the issuance of Government Regulation No. 78 of 2015, in particular section 64, the provisions in Decree No. 418/KPTS/EKKU/5/1981 of the Ministry of Agriculture that provide for disparate treatment between men and women in relation to the payment of employment-related benefits have been declared as invalid.

Article 2(b). Minimum wages. In its previous comments, the Committee requested the Government to indicate the steps taken to promote the use of objective job evaluation in the context of bipartite negotiations on minimum wage rates for different sectors. The Committee notes that the Government reiterates that section 6 of Ministerial Decree No. KEP. 49/MEN/2004 provides for the use of job evaluation for the determination of wages based on factors such as responsibility, and the role, the risk and the level of difficulty of the position concerned, but that it provides no further information on how it is ensured that in the bipartite negotiations on sectorial minimum wages, the work performed in sectors which are predominately female is not being undervalued. The Committee requests the Government to provide additional information on measures taken or envisaged, including by the National Equal Employment Opportunity (EEO) Task Force, to promote the use of objective job evaluation methods and the Gender Neutral Pay Equity Guidelines in determining sector-level minimum wage rates. In this regard, the Committee asks for the inclusion of information on measures taken to ensure that job evaluation exercises are carried out free from gender bias and that the jobs in sectors employing exclusively or predominantly women are not being undervalued, as well as information on any obstacles encountered, in this regard. It also asks the Government to indicate any recommendations made by the National Wage Council aimed at ensuring the application of the principle of the Convention.

Article 3. Objective job evaluation. In its previous comments, the Committee requested the Government to provide information on measures taken to promote the use of the Gender Neutral Pay Equity Guidelines at the Workplace, among workers and employers and their respective organizations, and on any measures taken or envisaged to promote objective job evaluation methods and the guidelines in the public sector. The Committee notes that tripartite technical training on gender equality in pay has been conducted in four regions. Regarding the public sector, the Government indicates that remuneration for the public service is regulated by Government Regulation No. 34 of 2014 – which amended Government Regulation No. 7 of 1977 – and Government Regulation No. 20 of 2011, of the State Employment Agency concerning guidelines for the calculation of allowances for civil servants’ performance, but provides no further information on the use of job evaluation methods. The Committee asks the Government to provide a copy of Government Regulation No. 34 of 2014, along with information on any measures taken or envisaged in light of this Regulation to promote objective job evaluation methods and the Guidelines in the public sector. It also encourages the Government to continue to broaden the scope of activities to promote the use of the Gender Neutral Pay Equity Guidelines, and to provide information on the various measures taken in this respect.

Enforcement. For a number of years, the Committee has been noting the absence in the Government’s report of information on cases of wage discrimination based on sex. It notes the Government’s indication that no complaints have been submitted to labour inspectors concerning wage discrimination in the current reporting cycle. The Committee had previously noted that a labour inspection guide on gender equality was being developed. It also notes the general information provided by the Government on measures taken to increase the capacity of labour inspectors against discrimination. The Committee requests the Government to provide further information on the awareness-raising and capacity-building activities conducted for the labour inspectorate, and the results achieved, with respect to promoting equal remuneration for men and women for work of equal value. It also requests the Government to continue to provide information on the nature and number of cases concerning wage discrimination detected by or reported to the labour inspectorate, or addressed by the courts, and any measures taken to collect and disseminate information on cases concerning wage discrimination to the wider public as a means of awareness raising on the principle of the Convention.