Union Workshop on Wage Fixing Policy

Minimum wage has always been a difficult, complex and controversial question in Indonesia and in many developing countries in the world. Achieving a balance between the economic and social objectives of minimum wage setting is a continuing challenge for policy makers, employers and workers. Employers are concerned about ability to pay and unions and activists about maintaining decent standards of living for workers. Policy makers must balance the demands of maintaining a wage floor for workers on the one hand, and the potential employment or inflation effects of wage setting on the other.