National Workshop on Wage System

The main objective of the workshop is to promote dialogue amongst the tripartite constituents and relevant stakeholders on development of a national system for determining above-minimum wages, in particular with regard to legal framework, institutions, and mechanisms.

Objectives and Output

The main objective of the workshop is to promote dialogue amongst the tripartite constituents and relevant stakeholders on development of a national system for determining above-minimum wages, in particular with regard to legal framework, institutions, and mechanisms.

The specific objectives of the workshop are as follows:

  • To promote awareness on best practices on implementation of performance management system (PMS) in selected countries;
  • To promote awareness on the national plan on development of PMS;
  • To identify currently available components for development of PMS in Indonesia; and
  • To provide inputs on development of PMS in Indonesia.

The workshop is expected to produce the following outputs:

  • Participants of the workshop became aware of best practices on implementation of performance management system (PMS) in selected countries, the national plan and available components for development of PMS; and
  • Inputs on development of PMS in Indonesia, gathered from participants of the workshop.

Background

With reference to recommendations of the National Consolidation Conference of All Wage Councils in Indonesia on 11-14 October 2017 on a roadmap of developing a just and competitive national wage system, which includes reviewing mechanisms of minimum wage fixing, strengthening the role of wage councils at provincial and district levels, and development of above-minimum wage system, the International Labour Office (ILO), through its project entitled “Labour standards in global supply chains: A programme of action for Asia and the garment sector” (“LSGSC Project”) has conducted a number of activities since December 2018 to facilitate development of a wage policies monitoring system, as the basis for development of an evidence-based wage policy making mechanism.

Another equally important component of the roadmap is the development of performance management system (PMS) to be used by enterprises as a framework in developing and determining salary scale and structure for above-minimum wages. In this area of work, two main activities are envisaged in the roadmap, namely: 1) development of performance management system (PMS); and 2) development of a centre for norms, standards, procedures, and criteria for PMS.

To facilitate the process, the project is organizing a national workshop on wage systems, which is to be conducted on 4-5 September 2018, according to the present terms of reference.

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