Payroll System – Each company must have an obligation to provide incentives or salaries to the employees. How the payroll system applies to each company is not necessarily the same. Each company may have an employee payroll policy that is different from each other. Let’s see more articles to find out more about employee management system especially in Indonesia!
Looking at the economic system of each different country certainly gives effect on the difference of employees payroll system. In Indonesia, companies also must have its own system in determining the amount of salary received by employees or employees of a company.
What differentiates employee payroll systems in each company?
The differences in employee payroll systems can occur due to the different sectors of the company’s business, the organizational structure of the company, the ability and the financial health of the company, the UMR system imposed in the company, the comparison of the weight of inter-position work, and much more that can be taken into consideration in distinguishing payroll system in each company.
What are the rules in employee payroll systems in Indonesia?
Although each company has different employee management systems, each company also has rules that must be considered in determining the structure and scale of salary for employees who are influential in determining the size or the amount of the employee’s salary.
Payroll system of employees in Indonesia itself has been regulated under Article 2 Paragraph 1 of the Minister of Manpower Regulation no. 1 Year 2017 which reads:
Wage Structure and Scale shall be prepared by the company taking into account:
- and Compentence
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