Labor Wages Must Increase Every Year: Minister

Jakarta (Antara) - Manpower Minister M Hanif Dhakiri has said labor wages must be raised every year and not every five years to ensure workers\' welfare. \"It is not correct to increase labor wages only once in five years. It should be increased every year,\" the minister told thousands of laborers who were staging a rally outside Merdeka Palace to mark the International Labor Day (May Day) on May 1 here on Friday. The minister explained that the government, together with stakeholders, is working on a draft government regulation on remuneration. They are formulating a remuneration system that will be fair to workers without burdening employers. \"In essence, labor wages must increase on an annual basis. The solution to this is to find a good formula for an annual raise. This is what we are working on,\" the minister noted. Once a formula is ready, laborers can be assured of a wage hike every year, and employers can also foresee major developments and make plans accordingly so that the wage increase will not disturb any company\'s financial planning. The minister revealed that he has received a proposal on a mechanism wherein remuneration can be adjusted based on inflation rate, the productivity of workers or the ability of companies. \"There are several wage increase formulas, but we are still studying them,\" he noted. (*)