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)

  1. 1. Upah Minimum Regional (UMR) in case of PT Freeport Herfina Puspawardani 19009079
  2. 2. 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
  3. 3. Regulation PERATURAN MENTERI TENAGA KERJA NOMOR : PER-01/MEN/1999 UPAH MINIMUM UU no 23 tahun 1999, in chapter 10 “Perlindungan , Pegupahan, dan Kesejahteraan
  4. 4. PT Freeport Problems • Mining technicians want an increasing salary and paid in dollar Causing • Strike Action Moreover, it has given salary based on UMR
  5. 5. 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
  6. 6. 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
  7. 7. 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.
  8. 8. THANK YOU!

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