Observation (CEACR) - adoptée 2024, publiée 113ème session CIT (2025)

Convention (n° 100) sur l'égalité de rémunération, 1951 - Indonésie (Ratification: 1958)

Article 1(a) of the Convention. Definition of remuneration. Legislation. The Committee recalls that Law No. 13/2003 concerning Manpower (Manpower Act) does not reflect fully the definition of “remuneration” under Article 1(a) of the Convention, since the term “wage” under section 1(30) of the Manpower Act does not include honorariums, tips or company profit shares. The Committee notes from the Government’s report that non-wage income is regulated by Government Regulation No. 36/2021 concerning Wages and is subject to the non-discrimination principle enshrined in section 2 of the Regulation. The Committee notes in particular that, according to section 8 of the Regulation, non-wage income may encompass religious feast allowances; incentives; bonuses; reimbursement for work facilities; and/or service fees for certain businesses. The Committee reiterates that the principle of equal remuneration for men and women for work of equal value 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 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 amend Law No. 13/2003 (Manpower Act) so as to reflect fully the definition of remuneration under Article 1(a) of the Convention. In the meantime, it requests the Government, in collaboration with employers’ and workers’ organizations, to make an assessment and provide information on: (i) the application in practice of section 8 of Government Regulation No. 36/2021 concerning Wages, notably any cases of discrimination between men and women relating to the application of the principle of the Convention that have been brought to the attention of the enforcement authorities and/or have been addressed by these authorities; (ii) the extent to which the principle of the Convention is being applied in practice to all forms of remuneration, including the wage and salary 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; and (iii) the findings and recommendations arising out of this assessment.

Articles 1(b) and 3. Equal remuneration for work of equal value. Legislation and application. The Committee recalls that for a number of years it has been encouraging the Government to give explicit legislative expression to the principle of equal remuneration for men and women for work of equal value. In particular, it has encouraged the Government to consider reviewing and amending Law No. 13/2003 concerning Manpower (Manpower Act), which only provides, in general terms, for equal opportunity (section 5) and equal treatment (section 6) without discrimination based on sex. It has also noted the obligation placed on companies to set up wage structures and scales applying to their employees and the provision of administrative sanctions in case of non-compliance, while observing that it remained unclear how the principle of the Convention applied in the design of the wage structure and scale. The Committee notes that the Government, in its report, informs about the adoption of the Government Regulation No. 36/2021 concerning Wages, which has replaced the earlier Regulation No. 78/2015 and has maintained the provision that “every worker shall have the right to the equal wage for the work of equal value” (article 2(3)). The Committee previously noted that this provision is formulated in general terms and does not address specifically non-discrimination between men and women. Concerning the application of the principle of equal remuneration for men and women for work of equal value in the design of wage structures and scales, the Government indicates that it has taken various measures to ensure it, such as promoting social dialogue and providing trainings and technical guidance on the development of wage structures and scales, as well as conducting awareness-raising activities on wage structures and scales across all sectors, including the garment sector. The Government also refers to the collaboration with the Better Work programme (a collaboration between the ILO and the International Finance Corporation) to enhance working conditions in the export-oriented garment sector through improved compliance with national labour laws and international standards. The Committee notes that the Government does not provide information on how the above-mentioned measures specifically address the principle of the Convention. In addition, the Committee notes the information provided by the Government with regard to the measures taken to promote objective job evaluation methods. In particular, it notes the indication that under Regulation No. 34/2014, an objective evaluation method is designed for determining the value and job class of public sector workers’ positions, based on the Factor Evaluation System (FES). The Committee furthermore notes the Government’s indication that there have been no cases of wage-related discrimination and gender bias.

The Committee emphasizes that only prohibiting sex-based discrimination generally – including when covering discrimination in respect of wage – will not normally be sufficient to give effect to the Convention, as it does not capture the concept of “work of equal value”. The Committee also recalls that “value”, in the context of the Convention, refers to the worth of a job for the purpose of fixing remuneration. While Article1 refers to rates of remuneration established without discrimination based on sex, clearly excluding any consideration related to the sex of the worker in determining value, Article3 presupposes the use of appropriate techniques for objective job evaluation to determine value, comparing factors such as skill, effort, responsibilities and working conditions. Comparing the relative value of jobs in occupations which may involve different types of skills, effort, responsibilities or working conditions, but which are nevertheless of equal value overall, is essential in order to eliminate pay discrimination resulting from the failure to recognize the value of work performed by women and men free from gender bias (see the 2012 General Survey on the fundamental Conventions, paragraphs 674 and 675). In light of the above, the Committee again encourages the Government to take the necessary steps to give full legislative expression to the principle of equal remuneration for men and women for work of equal value at the earliest opportunity, and to provide information on the progress made in this regard. It also asks the Government to provide information on: (i) how the measures reported concerning social dialogue, trainings, awareness-raising and technical guidance on the development of wage structures and scales cover the principle of the Convention and foster its application in practice; (ii) how objective job evaluation methods, including the Factor Evaluation System, are used in the design of wage structures and scales; (iii) the progress made in implementing objective job evaluation methods in the public and private sectors, including through an evaluation of the current situation undertaken in collaboration with the social partners; (iv) any specific measures adopted to raise awareness about the principle of the Convention among government officials, employers and workers and their organizations and to enhance the capacity of enforcement authorities, including labour inspectors, tribunals and other competent bodies, as well as workers’ and employers’ organizations, to identify and address cases of gender wage discrimination; and (v) 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.

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