Are Indonesia`s wages lower than the Philippines?

 

For those interested in a comparative analysis of minimum wages in selected regions on the Philippines, Malaysia and  Indonesia, we have put together a table showing these figures.

The daily minimum wages in all these countries are determined at the regional level by their respective governments, taking into account the needs of workers and their family, capacity to pay, comparable wages and requirements of economics and social development. For ease of analysis, we are showing you their equivalent value in Philippine Peso.

Indonesia’s daily minimum wages are also determined by State on a monthly basis. Thus, the figure in the chart consists of the monthly wage divided by 30 days.

Respectively, the implemented minimum wage is inclusive of all monetary benefits such as transportation, food and lodging allowances. In all, these allowances should not be more than 25% of the total wage.

The Sabah, Sarawak and Labuan regions of Malaysia set a miminum wage of 920 Ringgit per month.  At Php58.96 per hour, the minimum wage rate makes a Php 467.11 daily minimum wage.

Comparison of minimum wages

Looking at the chart, the Philippine National Capital Region’s minimum wage is almost twice as high as the Autonomous Region in Muslim Mindanao.

NCRs wages are also higher than Bali and Yogyakarta, North and South Sulawesi in Indonesia and Sabah ad Sarawak in Malaysia. For reference, Jakarta's daily minimum wage equivalent is 459 Philippine pesos per day.

The Indonesian States of North and South Sulawesi have almost the same wages as SOCKSARGEN in the Philippines, and have slightly lower minimum wages than the Davao region.

 

References:

Indonesia: https://www.expatindo.org/indonesian-minimum-wage/#what-does-minimum-wage-include

Malaysia:http://www.dailyexpress.com.my/news.cfm?NewsID=109312

Philippines: http://www.officialgazette.gov.ph/featured/how-is-minimum-wage-determined/

http://www.nwpc.dole.gov.ph/pages/statistics/latest_wo.html

Note: This artilcle was first posted on www.agrinationph.ga
 

Inter-regional Daily Minimum Wages among PH, Indonesia and Malaysia