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

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

Article 1(b) of the Convention. Equal remuneration for work of equal value. Legislation. For a number of years, the Committee has been asking the Government to improve the application of the Convention, including by reviewing Law No. 13/2003 concerning Manpower (Manpower Act), with a view to giving legal expression to the principle of the Convention. In this regard, the Committee had noted that the Manpower Act, read together with the Explanatory Notes on the Law, only provided, in general terms, for equal opportunity (section 5) and equal treatment (section 6) without discrimination based on sex, and considered that such general provisions, while important, were not sufficient to give effect to the Convention, as they do not include the concept of “work of equal value”. The Committee notes the Government’s indication that Regulation No. 78 of 2015 on Wages – which implements section 97 of the Manpower Act (regarding orders on decent income, wage policy and wages protection) – repeals Government Regulation No. 8 of 1981 providing in section 3 that in determining wages, employers shall not discriminate between men and women for work of equal value. While welcoming that section 11 of Regulation No. 78 of 2015 provides that “every worker is entitled to equal wage for work of equal value”, the Committee notes that the provision is now formulated in more general terms and no longer refers to non-discrimination between men and women. The Committee asks the Government to provide information on the manner in which sections 5 and 6 of the Law No. 13/2003 on Manpower and section 11 of Regulation No. 78 of 2015 are being applied in practice, including any violations specifically concerning the principle of equal remuneration for men and women for work of equal value detected by, or brought to the attention of, the labour inspection services, and any action taken to remedy those violations. The Committee also asks the Government to provide information on any administrative or judicial decisions applying the principle of the Convention. The Committee encourages the Government to consider, as soon as the opportunity arises, reviewing and amending the Manpower Act to give explicit legislative expression to the principle of equal remuneration for men and women for work of equal value, and to provide information on any consultations held with the social partners to this end.

Articles 1 and 2. Gender pay gap. In its previous observation, the Committee had requested the Government to provide information on measures taken to reduce the gender pay gap and promote the participation of women in a wider range of jobs at all levels. The Committee notes from the ILO Database of Labour Statistics (ILOSTAT) that while the gender gap in nominal monthly earnings of employees decreased overall in 2015, with improvements shown in occupations such as health associate professionals and nursing, the gender gap in nominal monthly earnings of employees remained significant in occupations where women are significantly represented, such as domestic helpers, cleaners and launderers (44 per cent); agriculture, forestry and fishery labourers (36.8 per cent); and teaching and teaching associate professionals (31.7 per cent). In this regard, the Committee notes from the ILO brief on “Indonesia: Trends in wages and productivity January 2015” that low-wage workers also tend to be disproportionately female. Regarding measures to reduce the gender pay gap, the Committee notes the Government’s indication that the National Level Equal Employment Opportunity (EEO) Task Force has issued a National Strategic Action Plan for 2013–19, which provides for public awareness raising; capacity-building measures including research and data collection on equality and non-discrimination; training of stakeholders; and the establishment of EEO Task Forces at the provincial and district or city levels. The Committee also notes that the “Gender Neutral Pay Equity Guidelines at the Workplace” were published in 2014, and that tripartite technical training on pay equity was conducted in four regions during 2014 and 2015 with the assistance of the ILO. Referring to its comments on the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), concerning occupational gender segregation in the labour market, the Committee recalls that such occupational segregation is often one of the underlying causes of inequalities in pay between men and women. It notes that the Government does not provide information on any specific measures taken or envisaged to promote women’s access to a wider range of jobs, including those that lead to higher levels of pay. The Committee encourages the Government to continue its efforts to promote the principle of the Convention and to broaden the scope of the educational and capacity-building activities targeting relevant government agencies and workers and employers and their organizations to promote the principle of the Convention, and to provide information on measures taken in this regard. It further requests the Government to provide information on the implementation of the National Strategic Action Plan for 2013–19, including specific measures taken at both national and provincial levels in collaboration with employers’ and workers’ organizations, to formulate, promote and implement programmes aimed at further reducing the gender pay gap and improving women’s participation in a wider range of jobs, including those with higher levels of pay. The Committee also asks the Government to provide up-to-date statistics on the distribution of men and women in various economic sectors and occupations and their corresponding earning levels, in both the public and private sectors, to enable the Committee to assess the evolution of the gender pay gap over time.

Article 2(2)(a). Discriminatory provisions with respect to benefits and allowances. For more than ten years, the Committee has been drawing the Government’s attention to the fact that section 31(3) of Law No. 1/1974 concerning Marriage, which identifies the husband as the head of the family, may have a discriminatory impact on women’s employment-related benefits and allowances due to the fact that women in the workforce are assumed to be either single or seeking a supplementary income, and are often not entitled to family allowances. The Committee notes the Government’s very general reply that section 6 of the Manpower Act prohibits employers from engaging in discrimination based on sex. The Committee urges the Government to take specific measures to ensure that women do not face direct or indirect discrimination in law or in practice with respect to family allowances and employment-related benefits, and to provide specific information on the progress made in this regard.

The Committee is raising other matters in a request addressed directly to the Government.