Implementation and Constraints of Minimum Wage Regulations for Informal Sector Workers in Semarang Regency

Minimum wage rules were created as a safety net for employers to provide a living wage for their workers. However, in reality this rule is difficult to implement in the informal sector. Based on the research location in Semarang Regency, the purpose of this study is to determine and examine the implementation of minimum wages, determine and examine the obstacles in implementing regulations regarding minimum wages, and explain the form of legal protection provided by the government to guarantee adequate wages for informal sector workers in Semarang Regency. The research approach method used is socio-legal and applies analytical descriptive research specifications. The results of the study show that the rules regarding minimum wages have not been enforced in the informal sector. This obstacle is caused by 3 aspects. For example, from the aspect of workers, there are informal sector workers whose competence is below that of formal sector workers. From the aspect of employers, the provision of wages is highly dependent on business income. From the government's side, there is a distinction in the imposition of rules regarding minimum wages where minimum wage rules only apply in the formal sector. So that the form of legal protection for informal sector workers is non-existent. The only effort is to provide assistance and law enforcement if there has been a case of violation of the rights of informal sector workers.

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Publication Details

Journal
International Journal of Social Science Research and Review
Published
2024-10-25
DOI
https://doi.org/10.47814/ijssrr.v7i9.2357
Primary Topic
Taxation and Compliance Studies
Type
article
Field-Weighted Citation Impact
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article

Implementation and Constraints of Minimum Wage Regulations for Informal Sector Workers in Semarang Regency

Nabitatus Sa’adah, Karel Parlindungan Lumbantoruan
International Journal of Social Science Research and Review
Taxation and Compliance Studies
article

Implementation and Constraints of Minimum Wage Regulations for Informal Sector Workers in Semarang Regency

Nabitatus Sa’adah, Karel Parlindungan Lumbantoruan
article en

Abstract

Minimum wage rules were created as a safety net for employers to provide a living wage for their workers. However, in reality this rule is difficult to implement in the informal sector. Based on the research location in Semarang Regency, the purpose of this study is to determine and examine the implementation of minimum wages, determine and examine the obstacles in implementing regulations regarding minimum wages, and explain the form of legal protection provided by the government to guarantee adequate wages for informal sector workers in Semarang Regency. The research approach method used is socio-legal and applies analytical descriptive research specifications. The results of the study show that the rules regarding minimum wages have not been enforced in the informal sector. This obstacle is caused by 3 aspects. For example, from the aspect of workers, there are informal sector workers whose competence is below that of formal sector workers. From the aspect of employers, the provision of wages is highly dependent on business income. From the government's side, there is a distinction in the imposition of rules regarding minimum wages where minimum wage rules only apply in the formal sector. So that the form of legal protection for informal sector workers is non-existent. The only effort is to provide assistance and law enforcement if there has been a case of violation of the rights of informal sector workers.

International Journal of Social Science Research and ReviewVol. 7(9)
Diponegoro University (ID)
Decent work and economic growth
Openalex Percentile: Top 77%
Taxation and Compliance Studies
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