Employee salaries are the rights of each employee stipulated in the Employment Act. The various variables included in the calculation are usually basic salary, allowances, dues, taxes, and so on. Each variable must be carefully calculated in order for each employee to be righted according to the responsibilities he or she exercises.
The components that affect the calculation of salaries submitted are then regulated in the standard regulations set by the government through the Regulation of the Minister of Finance. In Article 2 Paragraph 1 of the Regulation of the Minister of Finance of Manpower No. 1 of 2017, it is mentioned that the Structure and Scale of Wages must be prepared by employers by observing class, position, working period, education, and competency.
It is clear that the components presented in the regulation are then a major consideration. Although outside of these components there are also other things such as …