Wage Regulation and Worker Welfare: A Comparative Analysis of National Labor Law and Islamic Legal Perspectives

Background: Regulating wages is critical to ensuring workers receive fair compensation, which directly affects their living standards. In Indonesia, national labor law sets minimum wage standards, while Islamic labor law offers an alternative approach based on ethical principles. This study compares the wage regulation frameworks under Indonesian national labor law and Islamic labor law, focusing on their roles in achieving a decent standard of living for workers.Aims: This research aims to compare wage determination under Indonesian national labor law and Islamic labor law, evaluating their effectiveness in ensuring a decent living standard for workers. The study also identifies strengths and weaknesses in both systems and explores potential integration for improving worker welfare.Methods: The study employs a comparative legal research approach, analyzing Indonesia's 2003 Labor Law alongside Islamic labor law derived from the Qur'an, Hadith, and Ijtihad. It uses normative legal research and qualitative analysis based on literature reviews and case studies from relevant sectors.Results: The comparison shows that while national labor law focuses on economic factors like inflation and minimum wage, Islamic labor law emphasizes moral and social justice. Islamic law ensures that wages meet both economic and ethical standards, incorporating the maqasid al-shari'ah (goals of Islamic law), which aims for fairness and worker welfare.Conclusion: Both legal systems aim to ensure fair wages, though one is economically driven and the other ethically focused. Combining the strengths of both could lead to a more comprehensive approach, balancing economic efficiency with social justice. Future research should explore how these frameworks can be applied in policy-making to improve worker welfare.