The Legal Policy of the Minimum Wage for Workers' Adequate Subsistence

Anis Rukmawati

Abstract


This legal study seeks to determine wage policies through minimum wages in Government Regulation 36 of 2021 concerning Wages in order to provide workers with a decent standard of living and to identify legal certainty guarantees. This is a prescriptive type of normative legal research employing a statute-based methodology. Utilized types of legal materials include primary and secondary legal materials. The technique used to collect legal materials is called "literature collection. In the study technique, the technique used for analyzing legal materials is deduction. The study's findings indicate that the minimum wage outlined in Government Regulation Number 36 of 2021 concerning Wages is insufficient to provide a decent standard of living for workers. First, the formulation has eliminated the indicator for the decent living needs component. Second is the decline in worker or laborer participation in determining the minimum wage. Thirdly, the upper and lower limits now incorporate new variables. Fourth, the formula only offers the option of using the inflation rate or economic growth. Regulation No. 36 of 2021 has failed to provide legal certainty. This is based on 3 benchmarks, the first of which is Firstsharmony between regulations. Second, the content of the rules is unclear, resulting in multiple interpretations. Thirdly, laws from worlusesr are rejected when issuing orders/labor.


Keywords


Legal; Wage; Worker;

Full Text:

PDF
rticle

References


Alexandre, F., P. Bação, J. Cerejeira, H. Costa, and M. Portela, ‘Minimum Wage and Financially Distressed Firms: Another One Bites the Dust, Labour Economics, 74.September 2021 (2022), 102088 https://doi.org/10.1016/j.labeco.2021.102088

Belloc, Filippo, and Massimo D’Antoni, ‘The Elusive Effect of Employment Protection on Labor Turnover,’ Structural Change and Economic Dynamics, 54 (2020), 11–25 https://doi.org/10.1016/j.strueco.2020.04.001

Budijanto, Oki Wahju, ‘Upah Layak Bagi Pekerja/Buruh Dalam Perspektif Hukum Dan HAM’, Jurnal Penelitian Hukum De Jure, 17.3 (2017), 395 https://doi.org/10.30641/dejure.2017.v17.395-412

Che Ahmat, Nur Hidayah, Susan W. Arendt, and Daniel W. Russell, ‘Effects of Minimum Wage Policy Implementation: Compensation, Work Behaviors, and Quality of Life, International Journal of Hospitality Management, 81.April (2019), 229–38 https://doi.org/10.1016/j.ijhm.2019.04.019

Cobbe, Jennifer, and Jatinder Singh, ‘Artificial Intelligence as a Service: Legal Responsibilities, Liabilities, and Policy Challenges,’ Computer Law and Security Review, 42 (2021), 105573 https://doi.org/10.1016/j.clsr.2021.105573

Jiménez Martínez, Mónica, and Maribel Jiménez Martínez, ‘Are the Effects of Minimum Wage on the Labour Market the Same across Countries? A Meta-Analysis Spanning a Century’, Economic Systems, 45.1 (2021) https://doi.org/10.1016/j.ecosys.2020.100849

Kong, Dongmin, Ni Qin, and Junyi Xiang, ‘Minimum Wage and Entrepreneurship: Evidence from China, Journal of Economic Behavior and Organization, 189 (2021), 320–36 https://doi.org/10.1016/j.jebo.2021.06.047

Krozer, Alice, Juan Carlos Moreno Brid, and Juan Cristóbal Rubio Badan, ‘Inequality and Minimum Wage Policy: Not Even Talking, Much Less Walking in Mexico’, Investigacion Economica, 74.293 (2015), 3–26 https://doi.org/10.1016/j.inveco.2015.10.001

Lavecchia, Adam M., ‘Minimum Wage Policy with Optimal Taxes and Unemployment,’ Journal of Public Economics, 190 (2020), 104228 https://doi.org/10.1016/j.jpubeco.2020.104228

Lee, David, and Emmanuel Saez, ‘Optimal Minimum Wage Policy in Competitive Labor Markets, Journal of Public Economics, 96.9–10 (2012), 739–49 https://doi.org/10.1016/j.jpubeco.2012.06.001

Ni, Bin, and Kyosuke Kurita, ‘The Minimum Wage, Exports, and Firm Performance: Evidence from Indonesia’, Journal of Asian Economics, 69 (2020), 101218 https://doi.org/10.1016/j.asieco.2020.101218

Oliver, Giovanni, and Silvana Tenreyro, ‘Wage-Setting Patterns and Monetary Policy: International Evidence, Journal of Monetary Economics, 57.7 (2010), 785–802 https://doi.org/10.1016/j.jmoneco.2010.08.003

Rhee, Hyuk Jae, and Jeongseok Song, ‘Labor Market Friction, Nominal Wage Rigidities, and Monetary Policy in a Small Open Economy, International Review of Economics and Finance, 58.March (2018), 140–58 https://doi.org/10.1016/j.iref.2018.03.006

Sari, Yulia Adella, ‘Pengaruh Upah Minimum Tingkat Pengangguran Terbuka Dan Jumlah Penduduk Terhadap Kemiskinan Di Provinsi Jawa Tengah’, Equilibrium : Jurnal Ilmiah Ekonomi, Manajemen Dan Akuntansi, 10.2 (2021), 121–30 https://doi.org/10.35906/je001.v10i2.785

Šauer, Radek, ‘The Macroeconomics of the Minimum Wage,’ Journal of Macroeconomics, 56.December 2017 (2018), 89–112 https://doi.org/10.1016/j.jmacro.2018.01.003

Scallions Brito, Alessandra, and Celia Lessa Kerstenetzky, ‘Has the Minimum Wage Policy Been Important for Reducing Poverty in Brazil? A Decomposition Analysis for the Period from 2002 to 2013’, EconomiA, 20.1 (2019), 27–43 https://doi.org/10.1016/j.econ.2019.02.002

De Schryder, Selien, Gert Peersman, and Joris Wauters, ‘Wage Indexation and the Monetary Policy Regime’, Journal of Macroeconomics, 63.November 2018 (2020), 103166 https://doi.org/10.1016/j.jmacro.2019.103166

Sigaud, Liam, Angela Daley, Jonathan Rubin, and Caroline Noblet, ‘The Effects of Recent Minimum Wage Increases on Self-Reported Health in the United States’, Social Science and Medicine, 305.April (2022), 115110 https://doi.org/10.1016/j.socscimed.2022.115110

Thamrins, Thamrins, ‘Peranan Dewan Pengupahan Terhadap Penetapan Upah Minimum’, Uir Law Review, 1.01 (2017), 39 https://doi.org/10.25299/ulr.2017.1.01.152

Zhao, Naibao, and Meng Sun, ‘Effects of Minimum Wage on Workers’ on-the-Job Effort and Labor Market Outcomes’, Economic Modelling, 95.December 2019 (2021), 453–61 https://doi.org/10.1016/j.econmod.2020.03.012




DOI: https://doi.org/10.20961/jmail.v2i1.66467

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Anis Rukmawati

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.