4 Factors of Declining Employee Salary


4 Factors of Declining Employee Salary

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Decreasing employee salaries is something that is avoided by all employees. But do you know what that salary is? Wages / salary is an important instrument in a work relationship without salary. The employment relationship between the company and employees will not occur. Salary is a right for employees as a form of reward in the form of money. In determining, salary increases or salary reduction are stipulated in the law. But do you know what factors are factors that decrease employee salaries?

Delay in Attendance

Perhaps this is the most common reason for companies to reduce employee salaries. In fact, it’s not just a company. Some ministerial institutions in Indonesia also apply similar rules for ASN (State Civil Apparatus) in their environment. Not only in the form of salary deductions but also in the form of punishment. Like the addition of working hours according to the time delay. But without written rules and strong data, a decrease in employee salaries is seen making it up and also the company is not entitled to make a decrease in employee salaries.

Employees Not Performing Their Obligations
Factors that cause a decrease in employee salaries do not perform their obligations as employees who work in the company. Even companies have the right to deduct employee salaries if they do not perform their obligations and it has been regulated in Article 93 of Law No. 13 of 2003 concerning Manpower and Article 24 of Government Regulation No. 78 of 2015 concerning Wages which states that wages are not paid if employees do not do work known as the no work no pay principle, with the exception of certain things such as illness, marriage, marriage, circumcision, baptism, and others. If the employee commits a violation due to willful or negligence.


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