Upah Minimum Regional (UMR)
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Upah Minimum Regional (UMR)

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Midtest Presentation of Compensation Management Course by Herfina Puspawardani

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Upah Minimum Regional (UMR) Upah Minimum Regional (UMR) Presentation Transcript

  • Upah Minimum Regional (UMR) in case of PT Freeport Herfina Puspawardani 19009079
  • What is the definition of Compensation Management? UMR? Minimum Wage Regional in 2012 Total DKI Jakarta Rp1.529.150,00 Bogor Rp 1.174.200,00 Bandung Rp 1.223.800,00 Papua Barat Rp 1.410.000,00 – Rp 1.450.000,00
  • Regulation PERATURAN MENTERI TENAGA KERJA NOMOR : PER-01/MEN/1999 UPAH MINIMUM UU no 23 tahun 1999, in chapter 10 “Perlindungan , Pegupahan, dan Kesejahteraan
  • PT Freeport Problems • Mining technicians want an increasing salary and paid in dollar Causing • Strike Action Moreover, it has given salary based on UMR
  • Why could strike action be happened? • The average salary : $40.000 or about Rp360.000.000,00 per year, Rp 30.000.000,00 per month. • They get : Rp210.000.000,00 – Rp230.000.000,00 or about Rp19.000.000,00 per month. • They live in West Papua  daily needs are more expensive than in another islands
  • Suggestion for PT Freeport? • increase the base salary, monthly bonus, pension fund, another income protection in health and education for the children, and also for the allowance (housing) • make an agreement with the employees
  • Conclusion • PT Freeport has followed the rule and it is a good example. • Actually not only unfulfilled UMR that can cause demostration, but also unfulfilled salary standard can. • To avoid a demonstration happened that causing a big loss, a company can fulfill the employees proposed.
  • THANK YOU!