Enforcement of Labor Wages Below the Minimum Standard Reviewed from Government Regulation (PP) Number 36 of 2021 concerning Wages and Islamic Law

Abstract

The implementation of labor wages should be adjusted to the minimum wage set by the government, but the implementation of labor wages below the minimum standard carried out by several companies is interesting to study the implementation of labor wages below the minimum standard that is justified, considering that wages are an important aspect for workers to be able to live a decent life. The suspension of the minimum wage is a way out for companies that have not been able to meet the minimum wage payments. This applies before the passing of the Job Creation Law, where companies can apply for suspension of minimum wage payments to the local Governor/Regional Head. Then in order to ensure the ability and sustainability of a company, Law Number 11 of 2020 concerning Job Creation which was later clarified by PP Number 36 of 2021 concerning Wages contains new provisions, namely that the minimum wage is excluded for micro and small businesses with certain provisions and criteria. In the regulation, it is explained that companies are required to provide wages as the minimum wage that has been determined and there are sanctions for companies that do not run it.Regarding wages in Islamic law, the determination of wages (ujrah) of workers strictly upholds the principles of justice and sufficiency. The main principle of justice lies in the clarity of the contract (transaction) and commitment on the basis of willingness to do it (from the contractor). Therefore, Islam strongly prioritizes the principle of justice in all aspects including economic aspects, especially in determining wages for workers or laborers, so it is necessary to have a work agreement between workers and employers so that there is no arbitrariness of employers against their workers. The provision of time in work determined, as well as the amount of the wage payment system and the reference amount of wages that must be issued, is a very striking general difference from the concept used in Islamic Law and Government Regulation Number 36 of 2021 concerning Wages. Keywords: Wage, Labor, Government Regulation (PP), Islamic Law