Speaker of the Indonesian House of Representatives, Puan Maharani, has encouraged a proposed increase in workers’ minimum wage rate in 2022 to improve the welfare of those affected by the COVID-19 pandemic.

“We encourage that the increase must be able to fulfill the necessities of the people,” she said in an official statement here on Monday.

In 2020, the government had advised regional governments not to increase the wage rate in 2021, citing the decline in the national economy.

She said she believed that a wage raise can boost the purchasing power of workers, and thus improve their welfare.

“Many of the workers have experienced wage cuts or layoffs due to the pandemic,” she pointed out.

She then lauded the ministry for indicating it is planning to increase the minimum wage rate next year, although the amount was still being considered.

Maharani also urged the public to understand that the raise may not meet the expectations of all parties.

“However, I expect that there will be a compromise, thus the amount of the increase can accommodate the needs of workers in accordance to the company’s capabilities and national economic conditions,” she stated.

She asked the ministry to continue to socialize the plan to workers and prioritize a humanist approach to labor associations regarding potential disapproval on the quantum of the raise.

In addition, the house speaker also asked the government to involve the workers in discussions regarding the plan.

Meanwhile, she also expressed the hope that workers would accept the new rate even if the increase falls short of their expectations.

“We should remember that we are currently still recovering from the impact of COVID-19. Thus, the plan to raise the minimum wage rate next year is better than the absence of an increase this year,” she added.

Source: Antara News