Nowdays, Higher Education Doesn't Mean Higher Salary

I think we all can agree that the main reason we go to school is to get degree. In the hope of getting a high paid job. Regardless what are your other reasons. 

If you live in here, the situation is still traditional. Which means the higher education you have, the bigger chances that you may get a high paid job. 

But do you know that there's a new law that basically says, if you're an employer, you can pay your employees without considering their education or degree. 

Before that law comes out, there was a law that obligate employer to consider their employee candidate's education in deciding their salaries. Yes, you're reading it right. So, the question will be, what's that law actually?

Minimum Wage 

It should be noted that the word Regional Minimum Wage (UMR), or what is known as the UMR wage, is no longer used in legislation. The phrase used today is minimal wage.

There are two categories of minimum wage: 

1. Provincial Minimum Wage (UMP), set by the governor

2. The Regency/City Minimum Wage (UMK), which is established after the UMP and must be higher than the UMP.

UMR however is no longer relevant. The minimum wage, which includes the UMP and UMK, is what is currently recognized.

So What Will Happen If You Pay Your Employees Below Minimum Wage 

If an employer underpays a worker, they could face a minimum of one year in jail and a maximum of four years, as well as a minimum fine of Rp. 100 million and a maximum fine of Rp. 400 million.