Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

Equal Remuneration Convention, 1951 (No. 100) - Indonesia (Ratification: 1958)

1. Article 1(a) of the Convention. Application of the principle with respect to additional allowances and employment-related benefits. With reference to its previous comments on the definition of “wage” in section 1(3) of Manpower Act No. 13/2003 and the inclusion of additional allowances and benefits, the Committee notes the Government’s statement that section 1(3) is aimed at implementing Article 1(a) of the Convention, but that additional emoluments paid incidentally are not included as a component of the wage. The Committee recalls that the principle of the Convention applies to any additional emoluments whatsoever payable directly or indirectly in cash or in kind paid by the employer to the worker and arising out of the workers’ employment. It therefore asks the Government to clarify in its next report the specific meaning of “additional emoluments paid incidentally” and to indicate which allowances are covered under section 1(3) of Manpower Act No. 13/2003.

2. Further to the above, the Committee also notes from the Government’s report that it remains unclear whether Government Decree No. 37 of 1967 and Decree No. 418/KPTS/EKKU/5/1981 of the Ministry of Agriculture, which contain disparate treatment between men and women in relation to payment of employment-related benefits, have been revised. The Committee further recalls its previous comments under this Convention, as well as under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it expressed concern over the possible discriminatory impact in practice of section 31(3) of the Marriage Act (No. 1/1974) (which identifies the husband as the head of the family) on women’s employment-related benefits and allowances. The Committee notes from the Government’s report on the United Nations Convention on the Elimination of All Forms of Discrimination against Women that relevant ministries and women’s activists have concluded that section 31(3) needed to be revised (CEDAW/C/IDN/4-5, 27 July 2005, paragraph 161). The report also indicates that, because women in the workforce are assumed to be either single or seeking a supplementary income, they are often not entitled to family allowances (paragraph 106). Considering that the application of the principle of the Convention to additional allowances and benefits continues to raise problems in law and practice, the Committee asks the Government to indicate in its next report the measures taken or envisaged to: (a) revise or repeal the abovementioned legislative provisions, and the progress achieved; and (b) to ensure that no direct or indirect discrimination against women exists in practice with respect to family allowances and employment-related benefits.

3. Wage gap between men and women and practical application of the principle of the Convention. The Committee refers to its 2003 observation highlighting the need to analyse the pay situation between men and women and measures to improve the application of the Convention. The Committee notes with interest that the Government is making efforts to compile and distribute labour market data, including statistics on the average wages of men and women, and encourages the Government to continue this initiative. It notes, however, from the statistics published on the web site of the Department of Manpower and Transmigration that in 2003 women’s average wage/net salary per month was 74 per cent of that of men. The 2003 statistics on the average wage/net salary per month further confirm that women are concentrated in the lower wage categories: about 55 per cent of women are employed in the monthly wage category of less than 200,000 rupiah, while they represent only 13 per cent of those employed in the highest wage category of more than 2,000,000 rupiah. The Committee notes from the information provided on the implementation of the 2004 ILO resolution on gender equality, pay equity and maternity protection that the Government is taking a number of measures to improve the application of the Convention, including the following: the EEO Guidelines for the private sector; programmes to raise awareness among industrial relations officers and social partners to evaluate the implementation on the wages policy; and including equal remuneration in collective agreements. The Committee asks the Government to provide detailed information in its next report on the practical application of these measures as well as their specific impact on reducing the wage gap between men and women.

4. Article 2. Application of the principle by means of minimum wages. The Committee notes the general information provided by the Government on the tripartite functioning of the wage councils. It notes that the Government hopes that through this mechanism equal remuneration for men and women can be assured. The Committee recalls that, where the Government is in a position to exert direct or indirect influence on the level of wages, it is responsible under Article 2, paragraph 1, of the Convention to ensure the application of equal remuneration for work of equal value. The Committee therefore asks the Government to provide concrete information in its next report demonstrating how the wages councils take into account the principle of the Convention in the formulation of wage policies. The Committee appreciates the statistics provided by the Government on the minimum wages set by sector for 2005. It requests the Government to provide an indication, including providing available statistics disaggregated by sex, on the distribution of women and men employed in the various sectors and industries.

5. Article 3. Methods for objective job evaluation. With reference to its previous comments on measures taken to promote the objective evaluation of jobs, the Committee notes with interest Ministerial Decision
No. KEP/49/MEN/IV/2004 concerning the regulation of the structure and scale of wages, implementing section 92 of Manpower Act No. 13/2003. It notes that the Decision provides that enterprises shall establish wages structures and wage scales on the basis of a job analysis, job description and job evaluation (section 3). Section 6 of the Ministerial Decision provides that the job evaluation shall take account of factors such as responsibility, the contribution of the occupation to the enterprise, occupational risks and the occupational degree of difficulty. The Committee further notes from the Government’s report that the labour inspectorate is responsible for verifying compliance of the regulations and collective agreements with the abovementioned Decision. The Committee asks the Government to provide information in its next report on the practical application and enforcement of Ministerial Decision No. 49/2004, including copies of collective agreements and company regulations formulating the structure and scales of wages. Please also indicate the measures taken, in cooperation with workers’ and employers’ organizations, to avoid gender bias in the use of the abovementioned factors for job evaluation.