Citizen Welfare Is Not Just a Minimum Wage

Earning more than the minimum wage in Surabaya, East Java, does not guarantee the welfare and comfort of life for residents.

KOMPAS/BAHANA PATRIA GUPTA

By carrying letters with the words "Reject Low Wages for Workers" towards the East Java Governor's Office to commemorate Labor Day on Jalan Pahlawan, Surabaya, on Wednesday (1/5/2024), thousands of participating workers, many of whom came from outside the city. Previously, they gathered at Bundaran Waru before leaving together to the East Java Governor's Office.

Monthly income worth Minimum Wage City Surabaya 2024 which is IDR 4,725 million is considered sufficient for Abdullah (25), a single employee who has worked for three years in the capital of East Java.

However, the average income of IDR 2.5 million per month is also grateful and sufficient for the life of Sumarno (35), who has been a motorbike taxi partner in the motorbike (online) network for the last four years.

From there, the measures of suitability, welfare, let alone the comfort of life as citizens of the Heroic Earth are clearly different. A salary several times higher than the minimum wage does not necessarily bring comfort and happiness. However, adequate wages ensure better welfare towards happiness.

Also read: Labors, Drivers of Industries that are Increasingly Marginalized

"For me, blessings must be grateful for and managed to meet needs while also helping to prepare for the future," said Abdullah when met at a food stall near Pasar Pucang Anom, Surabaya, on Saturday (4/5/2024).

Abdullah, born in Magetan, stated that the income of 4,725,000 IDR was used for daily expenses of 1.5 million IDR, monthly installments for a motorcycle and gasoline costs of 1.4 million IDR, basic accommodation including electricity and water of 700,000 IDR, savings of 300,000 IDR, clothing and personal necessities of 300,000 IDR, recreation and telecommunications of 300,000 IDR, and healthcare of 200,000 IDR.

KOMPAS/BAHANA PATRIA GUPTA

Workers are waiting for their colleagues to join them in heading to the East Java Governor's Office to commemorate Labor Day in Surabaya on Wednesday (1/5/2024). Many of the thousands of participating workers came from outside the city.

"Until I finish paying off my motorcycle installments in five years, I cannot even think of buying a house, settling down, and getting married," said Abdullah. If he starts a family, he is determined to find a life partner who also works. A working partner will provide a strong economic foundation to meet the needs of the family, especially for the children.

If the income is more than three times the poverty line, that is considered prosperous. If it's not enough, it means there is an issue with lifestyle, not being careful in managing expenses.

Abdullah is also determined to continue his postgraduate studies and/or courses that enhance his competence and skills. With these competencies and skills, Abdullah believes that he can obtain a higher-paying job, an accommodating work environment, and a good quality of life.

Also read: One ​​Decade, the Trend of Increasing Minimum Wages for Workers Continues to Decline

Uncertain

Before becoming a motorbike taxi partner, Sumarno was a laborer and a contract employee. He married when he was 30 years old and was blessed with a daughter who is now 3 years old. His child was born during the Covid-19 pandemic and he was laid off from work.

"My wife works as a maid in several homes, earning Rp 1 million, which is quite decent for us," said Sumarno, a resident of Wonokromo. The total income of the couple, which is below the minimum wage, is arranged in such a way that they can meet their needs, especially for food, rent, clothing, education, and healthcare.

Sumarno stated that he desires a job with a decent regular income, at least the minimum wage, to improve his family's standard of living. With his current income, it is impossible for him to make installments on the ownership of a residence such as an apartment or even a landed house.

AMBROSIUS HARTO MANUMOYOSO

The banner carried by laborers during the demonstration rejecting the Job Creation Bill in front of the East Java Governor's Office, Surabaya, on Tuesday (28/7/2020).

Worthy

Surabaya Mayor Eri Cahyadi once said that the established minimum wage is believed to be able to provide a decent living for someone in this metropolitan area with a population of 3 million people. Roughly calculated, for a family with two children, their lives will be guaranteed prosperity if the husband, wife, or partner earns at least twice the minimum wage.

"A decent wage needs to be supported by literacy or a good understanding of management and lifestyle so that your needs are met and you feel comfortable," said Eri.

Also read: Don't Just Talk About Labor Wages

Gigih Prihantono, a lecturer in Development Economics at Airlangga University, said that the minimum wage for single workers is very decent, even prosperous, because it is many times the 2023 poverty line which is IDR 718,370. The minimum wage is 6.57 times the poverty line or the lowest level of income considered necessary to achieve a per capita standard of living.

"If someone earns more than three times the poverty line, that is considered prosperous. If it is not enough, then the issue lies in their lifestyle, not being careful in managing expenses," said Gigih.

For a family consisting of a husband, wife, and two children, the poverty line is Rp 2,873 million. If the husband, wife, or partner earns at least twice the poverty line, their standard of living can be considered prosperous economically.

KOMPAS/BAHANA PATRIA GUPTA

Children relax in Taman Prestasi during the Labor Day holiday, in Surabaya, on Wednesday (5/1/2024). During the Labor Day holiday, many residents choose to have an affordable vacation by visiting the park. In the park, visitors can enjoy a number of rides and also enjoy the lush trees.

Persistently continuing, it will be difficult to measure the appropriate level of wages that can guarantee someone live prosperously and comfortably in Surabaya. Each person's measure of prosperity, happiness and comfort is different. However, if you look at the poverty line, someone who earns many times that means they should be prosperous.

According to Gigih, in the context of food needs, a person needs to fulfill 2,000-2,500 calories per day. If one meal is allocated at Rp 15,000-Rp 20,000, these calorie needs can be met with three meals a day at a simple yet nutritious food stall that serves rice, vegetables, meat, and fruit.

Also read: Considering Labor's Future Between Bonuses or Demographic Burden

Expenses for food can be saved by shopping and cooking at home. However, purchasing food ingredients must be done carefully to obtain good quality, nutritious, and healthy food while minimizing the potential negative impacts on health.

"The role of the government is to ensure that residents are not burdened with high expenses for education, health, transportation, and energy (electricity, water, gas) through cost waivers or subsidies," said Gigih. If these expenses can be minimized by the government so that residents are not burdened, the community's livelihoods are more guaranteed, and they feel more comfortable. However, in Surabaya, not all residents have access to free education, health insurance, and adequate public transportation."

KOMPAS/BAHANA PATRIA GUPTA

By working together, transport workers unload boxes filled with carrots from Berastagi, North Sumatra at the Keputran Utara Market in Surabaya, East Java on Monday (13/2/2023). The Keputran Utara Market is a place where vegetable farmers around Surabaya market their products. Every day from 3 PM, vegetable transport trucks from outside Surabaya arrive at the market. Market activities continue until early morning.

The Chairperson of the Surabaya Labor Solidarity Institute (ISBS), Maria Domin Dhamayanti, believes that the minimum wage has not yet met the reasonable or comfortable standard of living. The increase in the minimum wage has not been able to overcome the real inflation of goods and services, especially in vital needs such as food, clothing, health, and education.

"You can't simply define prosperity as a wage that is several times above the poverty line," said Domin. For the 2021 wage of Rp 4,300,479 million with a poverty line of Rp 611,466. The following year, the wage will be Rp 4,375,479 with a poverty line of Rp 652,540. In 2023, the wage will be Rp 4,525,479 with a poverty line of Rp 718,370.

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Domin continued, the mechanism for determining wages is based on Government Regulation Number 51 of 2023 concerning Wages as a revision of similar regulations, number 36 of 2021. The calculation of wage increases is based on three variables, namely inflation, economic growth, and a specific index according to the Regional Wage Council. Previously, wage calculations were based on a survey of the components of a decent living standard in accordance with Government Regulation Number 78 of 2015 concerning Wages, which were deemed inadequate.

"The calculation of wages based on decent living standards is still inadequate, let alone with the simplification of those three variables, I feel it is getting further away from adequacy," said Domin. This situation is exacerbated by the fact that the mandated wages are not always followed by companies. There are still companies that pay below minimum wage, ranging from IDR 2.5 million to IDR 3 million, with the excuse that it is already above the poverty line.

"Unfortunately, inadequate wages are not offset by good literacy. "Many, you know, workers fall into debt online or even gamble online because they think they are looking for additional income, but in short and wrong ways," said Domin.