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 salary and approval on employment contracts, this time the discussion will be focused on the components conveyed in the regulation as the basis of consideration.
It is defined as a grouping of positions or positions based on the value and workload of a particular position. For example, the group of managers will consist of financial managers, HR managers, public relations managers, and so on. This is determined based on the level of the existing position and becomes the determinant of the amount of base salary and allowances that may be received. Of course, different groups will also distinguish the total salary amount received by employees. Managers will not be equally paid by directors or commissioners. Given the obvious strata differences, each group will have its own standard of salary. Then, it will be detailed again with the division of positions.
Every human element in the company has its own responsibilities and work according to its role and position. The position itself can definitively be interpreted as a group of tasks and work that must be completed and attached to a particular position within the organization or company. The employee’s salary will adjust to the low level of the office held by the employee. For example, in his position as an HR staff, of course, his salary will be different from the HR manager. This is because the workload and capacity required are different. HR managers will get a bigger salary because they are responsible for the performance of all hr staff.
Every year, the salary earned by employees will ideally increase. Either because of the increase in local salary or because of co-agreed policies and contracts. In the same position and position, it may be that the salary received is different because of the difference in the total working period that the employee has.
With longer working life, employees have more experience compared to employees with a short new working life. With a comparative record done in the same position and position, in one company. The value of employees with long working life is high because it certainly shows how much the employee can function optimally in the company.