14.8 Million Indonesian Workers Still Received Unfair Wages in 2022

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Erlina Fury Santika 28/04/2023 15:36 WIB

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The BPS reported a significant increase in the number of underpaid workers in 2022.

Proportion of Indonesian Workers Receiving Unfair/Low Wages (2021-2022)

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14.8 Million Indonesian Workers Still Received Unfair Wages in 2022

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Proportion of Indonesian Workers Receiving Unfair/Low Wages (2021-2022)

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The Central Bureau of Statistics (BPS) calculates the Low Pay Rate (LPR) to measure the proportion of workers earning low or inadequate wages.

In 2022, 29.11% of workers received low wages, compared to 27.67% in 2021. "This signifies a decrease in the proportion of workers receiving adequate wages from 2021 to 2022," stated the BPS in its report.

However, in absolute numbers, the number of workers receiving inadequate wages increased from 13.59 million in 2021 to 14.83 million in 2022.

(Also read: Workers Joining Labor Unions in Indonesia Decreased in 2022)

Ideally, wage calculation should use hourly wages. However, due to limitations in the National Labor Force Survey (Sakernas), monthly wages from the previous month are used. The BPS claims this is common practice in developing countries, including Indonesia.

The LPR calculation formula is: (total nominal wages of workers below 2/3 of the median wage) / (total number of workers) x 100%.

The BPS acknowledges that the LPR indicator is relative and depends on the distribution of all wages received by workers. "If wages increase and wage distribution changes, the 2/3 median wage threshold will also change accordingly," the BPS wrote.

(Also read: The Higher the Worker's Education Level, the Higher the Wages)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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14.8 Million Indonesian Workers Still Received Unfair Wages in 2022

14.8 Million Indonesian Workers Still Received Unfair Wages in 2022

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14.8 Million Indonesian Workers Still Received Unfair Wages in 2022

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