Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

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

Article 1(a) of the Convention. Definition of remuneration.  In its previous comments, the Committee asked 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. It also asked 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. The Committee recalls that the term “wage” under section 1(30) of Law No. 13/2003 concerning Manpower (the Manpower Act) does not include honorariums, tips or company profit shares. As the Committee recalled previously, 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. The Committee notes the Government’s indication that it will facilitate, in consultation with the organizations of workers and employers, the amendment of the Manpower Act. The Committee asks the Government to provide information on any developments concerning the amendment of Law No. 13/2003 concerning Manpower for the purpose of reflecting fully the definition of “remuneration” under Article 1(b) of the Convention. It also once again asks the Government to provide information on any specific measures adopted to ensure that the principle of equal remuneration for work of equal value applies in practice to all forms of remuneration, including wage and non-wage income and any additional emoluments arising out of the worker’s employment.

Articles 1 and 2. Gender pay gap.  In its previous observation, the Committee encouraged 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, and to provide information on the measures taken in this regard. It also requested the Government to: (1) provide information on the implementation of the National Strategic Action Plan 2013–19 of the National Task Force on Equal Employment Opportunity (EEO), including specific measures taken at both the 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; and (2) provide updated statistics on the distribution of men and women in the various economic sectors and occupations and their corresponding income levels, in both the public and private sectors, to enable the Committee to assess the evolution of the gender pay gap over time. The Committee notes the Government’s indication that it provided technical guidance on the development of wage structures and scales between 2015 and 2018 and conducted awareness-raising on equality in 2019 for government officials, workers and employers and their organizations. The Committee also notes that, in the framework of the National Strategic Action Plan 2013–19, the Government raised awareness, developed guidelines and increased supervision on equality and non-discrimination in general. Concerning the distribution of men and women in the various economic sectors and occupations, the Committee notes from the statistics provided by the Government that women mostly work in agriculture, forestry and fisheries, wholesale and retail trade, the processing industry, accommodation, food and beverage services, and education. It also notes from the ILO Database of Labour Statistics (ILOSTAT) that in 2019 the gender gap in average monthly earnings was 15.72 per cent. The Committee asks the Government to provide information on the specific measures adopted 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, and to continue providing up-to-date statistics on the distribution of men and women in the various economic sectors and occupations, including information on their corresponding earnings levels, in both the public and private sectors. The Government is also requested to indicate how the principle of the Convention is covered in the technical guidance on the development of wage structures and scales.

Article 2(b). Minimum wages. In its previous comments, the Committee requested the Government to provide additional information on the measures taken or envisaged, including by the National Task Force on Equal Employment Opportunity (EEO), to promote the use of objective job evaluation methods and the Gender Neutral Pay Equity Guidelines in determining sectoral minimum wage rates. In this regard, the Committee asked the Government to: (1) provide information on the 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 undervalued, as well as any obstacles encountered; and (2) indicate any recommendations made by the National Wage Council aimed at ensuring the application of the principle of the Convention. The Committee notes the Government’s reference to the Minister of Manpower Regulation No. 1 of 2017 concerning the structure and scale of wages, replacing the Minister of Manpower Decree No. PEM.49/MEN/2004, which focuses on the preparation and implementation of the structure and scale of wages at the company level, and does not cover wage-setting at the sectoral level, nor does it regulate sectoral minimum wage rates. The Committee also notes the Government’s indication that sectoral minimum wages are regulated under the Minister of Manpower Regulation No. 15 of 2018 concerning Minimum Wages and that no cases of minimum wages determined on discriminatory grounds have been recorded by the National Wage Council. The Committee further notes the information provided by the Government concerning the awareness-raising activities on equality and non-discrimination undertaken by the EEO Task Force. The Committee recalls that the setting of minimum wages is an important means by which the Convention is applied. However, because there is a tendency to set lower wages in sectors predominantly employing women, special attention is needed in the design or adjustment of sectoral minimum wage schemes to ensure that the rates fixed are free from gender bias, and in particular that certain skills considered to be “female” are not undervalued (2012 General Survey on the fundamental Conventions, paragraph 683). The Committee asks the Government to indicate how it is ensured in practice that minimum wage rates are fixed on the basis of objective criteria, free from gender bias, to ensure that work in sectors with a high proportion of women is not undervalued in comparison with sectors in which men are predominantly employed, and on how the use of the Gender Neutral Pay Equity Guidelines is promoted in determining sector minimum wage rates.

Article 3. Objective job evaluation.  The Committee once again asks the Government to provide information on any measures taken or envisaged under Regulation No. 34 of 2014 to promote objective job evaluation methods in the public sector, as well as on any activities undertaken to promote the use of the Gender Neutral Pay Equity Guidelines.

Enforcement.  The Committee reiterates its request for information on: (i) 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; and (ii) the nature and number of cases concerning violations of the principle of the Convention 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 raising awareness on the principle of the Convention.