minimum wage and non-taxable income: to measure fair and feasible

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UJLS

Volume 1 Issue 1, March 2017: pp. 1-13. Copyright © 2016 2017 UJLS. Faculty of Law, University of Sumatera Utara, Medan, North Sumatera, Indonesia. ISSN: 2549-1261 | e-ISSN: 2549-130X. Open Access at : http://jurnal.usu.ac.id/index.php/UJLS

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MINIMUM WAGE AND NON-TAXABLE INCOME: TO MEASURE FAIR AND FEASIBLE WAGE FOR HUMANITY Budiman Ginting Faculty of Law, University of Sumatera Utara Jalan Universitas No. 4 Kampus USU, Medan 20155, Indonesia Tel/Fax: 081370934242 Email: [email protected] Agusmidah Faculty of Law, University of Sumatera Utara Jalan Universitas No. 4 Kampus USU, Medan 20155, Indonesia Tel/Fax:081265873076 Email: [email protected] Submitted: Mar 08, 2017; Reviewed: Apr 27, 2017; Accepted: May 02, 2017 Abstract: The enforced regulation states that minimum wage is according to the inflation rate

and economic growth. This article shows that the wage of the employee, including the nontaxable income, is the substantiation of infeasible minimum wage of the employee, because not only, it hasn’t met the opportunity cost, but it also hasn’t fulfilled the daily needs of the employees. This article uses the data of primary and secondary legal materials obtained from library research, with legislation and conceptual approach, conducted analytically, and presented in descriptive-qualitative form. The synergy between the doer of industrial relation in performing the right and obligation decently and with goodwill shall carry us to the national goal, the commonweal. Keywords: Employee; Feasible wage ; Non-taxable Income

INTRODUCTION

society, not a society with an important role

Minimum wage of employees in Indonesia

to support the income of the country.

is commonly under the amount of taxable

The condition, when the minimum

income, meaning that most employees are

wage of employees is included in non

not the contributor to the treasury fund,

taxable income, is assumed as if the

since their income is not taxable for income

minimum wage has not fulfilled the criteria

tax. This emphasizes that employees are

as feasible wage as mentioned in Republic

becoming

Indonesia

non-contributing

citizen

in

Constitution.

Feasible

is

income tax, namely minimum contributing ∎1

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

translated as a decent/common/merit.1 If the

rupiahs (before, it was 3 million rupiahs).

wage of the employees is part of non

The wage of formal sector employee

taxable income, it may not have fulfilled the

working in employment commonly doesn’t

criteria as a feasible/decent/common wage

reach the number.

so that it cannot be made as the object of

Table. The Change in Non Taxable Income

tax for the country. Very few have realized

Amount Since 2009 to 2015

the wide gap or distance between minimum

Explanation

wage and taxable income which has no positive contribution. The result is showing that the main reason for an establishment for rise in non taxable income is to increase the purchasing power.2 The connection between a rise in non

taxable

purchasing

income power,

with

according

improving to

Non Taxable Income 2009-2012 15.840.000

2013-2014 24,300,000

2015 36.000.000

2016 54.000.000.

Addition for Marriage Taxpayer

1.320.000

2,025,000

3.000.000

4.500.000.

Addition for a wife whose income is combined with the husband

15.840.000

24,300,000

36.000.000

54.000.000.

Addition for each family related by blood and related by marriage in a straight lineage, adoption child who is a full responsibility of the parents in maximum of 3 children in each family.

1.320.000

2,025,000

3.000.000

4.500.000.

Individual Taxpayer

The establishment of minimum

the

wage and non taxable income by the

research, has no correlation. This is because

country is for the purpose of the society.

of some factors influencing the purchasing

The country presents in employment to

power of the society3 :

a. Amount of

become a party who protects the purposes

children; b. High Price of basic needs; c.

of other parties (employee and employers),

Weak currency of Rupiah; d. Pricey

and also as the power which will balance

Tuition; e. Environment; f. Salary; g. Debt;

two different purposes. The basic policy in

h. Company deduction.

employment/labor law is to protect the

In fact, the amount of non taxable income has always in a rise from year to

employee for the unbalanced bargain position with the employers/busi-nessman.

year as can be seen in the following table.

Seen from the goal of the country to

In 2016, non taxable income for employee

add the amount of non taxable income and

(single) was established for 4,5 million

to limit the rise of amount percentage of minimum wage with the Government

1

KBBI Daring in kbbi.kemendikbud.go.id (accessed 20 Januari 2017). 2 The government even rose non taxable income for 50% in 2016 http://www.kemenkeu.go.id/Berita/mulaijanuari-2016-ptkp-naik-jadi-rp54-juta-tahun . (Accessed 29 Januari 2017). 3 Gorby Jonathan, Achmad Husaini, Sunarti. (2014). Pengaruh Kenaikan Penghasilan Tidak Kena Pajak (PTKP) Terhadap Peningkatan Daya Beli Masyarakat di Daerah Kabupaten Kediri. Jurnal e-Perpajakan, 1 (1): 1-8.

2∎

Regulation number 78 of 2015, it didn’t succeed in improving the purchasing power employees in real, and it also has made the position of the employees as a non contributing citizen from income tax., both

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

reasons are enough to review the legal

the huge involvement of the country in this

policy of the government in realizing the

matter.

mandate of constitution for feasible wage for employees/ labors.

Non

Taxable

Income

Establishment

Legal Policy Tax is dues to the country which

METHOD This writing is normative legal study with

implementation can be forced with official

legislation and conceptual approach. The

regulation so that the taxpayers, according

primary legal materials are Indonesian

to the provision, have debts to the country,

Constitution 1945, Act number 13 of 2003,

and the dues are to be used to fund the

and practical regulation of the Labor Law,

governmental business.4 The definition

especially

also

creates characters of the tax which are: 1)

secondary legal material obtained from

conducted according to legislation, 2)

library research especially form scientific

contra-achievement cannot be appointed

journal. The data is analyzed and presented

directly to individual taxpayer by the

in descriptive-qualitative form.

government 3) conducted by central and

regarding

wage,

and

regional government 4) conducted for the ANALYSIS AND DISCUSSION

country’s expenses, 5) the surplus of the tax

The regulation of tax and wage are two

use can be used as the country’s saving to

things included in public law. Even though

fund public investment.5 Indonesia as one

they are in regards to individual and legal

of the developing countries put tax as one

entity,

and

of the main sources of the country’s income

implementation are authorized by the

for it is contributing the income for 80%,

country. In terms of wage for instance, even

even more. Ministry of Finance mentioned

though it is a part which must be agreed in

that in 2015 budget, the realization of the

contract, the involvement of country in its

country’s income reached the number of

establishment is matter through the wages

Rp. 1.491,5 trillion (temporary number), or

council with the tripartite factors, and its

84,7% of the target in the Alteration State

establishment must be under the resolution

Budget in the amount of Rp. 1.761,6

of the head of the district. In a case of a

trillion. From the total realization of the

the

establishment

businessman doesn’t apply the wage rules, the country, with criminal law instrument, may process the case in court. These reflect

4

P.J.A Adriani as cited by R Santoso Brotodihardjo. (2003). Pengantar Ilmu Hukum Pajak. Bandung: Refika Aditama. p.2 5 Ibid.

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USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

income, tax income realization reached Rp.

In regards to income tax, the object

1.235,8 trillion, or 83% of Alteration State

of the tax (Act of income tax) is the income

Budget target 2015 of 1.489,3 trillion.6

in every addition of economic capability,

Legal Policy is in the hand of the

accepted or obtained by the taxpayer, from

government, and it should be based on

Indonesia or outside Indonesia, which can

social, culture, and economic condition of

be used as consumption or for the wealth of

the related society. Without the support of

the taxpayers, in any name or form such as

the values, there will not be a rule accepted

operating profit, lottery prize, payment,

by the society. Besides, it can be explained

interest, royalty, rent, insurance premium,

that the real goal of legal policy is to create

religious-related income. The excepted ones

a fair and prosperous rule or regulation for

are charity, gift accepted by immediate

society.

family, heritance, property including cash

Legal policy in the hand of wise government

will

assist

in

creating

regulation based on social reality or

deposit, payment from insurance company, scholarship with certain requirement, or assistance.

“sociale werkelijkheid” , which means that

Article 21 of the Income Tax Act

it will be able to realize ius constituendum

has the term of non-taxable income. Non

to be ius constitutum. On the other hand,

taxable income is the income which is not

legal policy of the government with power,

taxable for individual taxpayer, it means

can be made as the media to achieve the

that if the net income of the taxpayer is less

goal of the ruler, far away from the law

than the non taxable income, it will not be

desired by the society as the fair law.

7

taxed. So, non taxable income is also functioned

to

decrease

income

tax

according to article 21. The bigger the 6

Ministry of Finance in http://www.kemenkeu.go.id/Berita/realisasi-pendapatannegara-2015-capai-rp14915-triliun%3Ftag%3Danggaranapbn-p-2015-pendapatan (akses tanggal 25 Januari 2017), compare with Nuritomo, Pengaruh Peningkatan Penghasilan Tidak Kena Pajak Terhadap Penerimaan Pajak Studi Pada KPP Yogyakarta Satu, in http://ejournal.uajy.ac.id/7780/ (accessed in 25 January 2017) 7 Utrech explained regarding legal policy based on the opinion of belleford that legal policy is trying to create such provisions which will appoint how human should act. Legal policy investigates what alteration needs to be made in current law to be adjusted with social reality or . “sociale werkelijkheid”. But sometimes it is also to fail the law order and the social reality, that is when legal policy is made as a tool in a ruling class without concerning the social reality. See E Utrech. (1966). Pengantar Dalam Hukum Indonesia. Jakarta: Ichtiar. p.74-75

4∎

amount of the non taxable income is, the smaller the amount that can be taxed. The implementation of non taxable income is by decreasing the net income which is the clean income after deducted from other cost such as position allowance, insurance of the receiver. Non taxable income established by the country is getting bigger from time to

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

time, on top of the minimum wage amount, so that the labor achieving the wage based

Article 27 (2) Indonesian Constitution 1945 states that:

on minimum wage is definitely not the

“each citizen is entitled to a decent

subject of income tax. Legal policy

job and livelihood for humanity”

increases the amount of non taxable income

This

regularly based on monetary development,

containing constitutional right of the citizen

purchasing

market

to have a job, but also constitutional right to

orientation. If studied further, the big gap

be provided with protection after having the

between the amount of minimum wage and

job, even when the employment has ended.

taxable income is the sign that the wage of

This is then regulated in Act of Labor (Act

the labor is still very low, and even

number 13 of 2003) including the rule of

infeasible.

pre-employment, during employment and

power,

which

are

The wage policy to realize the

article,

essentially

is

not

only

post employment.

income, which will create decent life for

Still in Article 27 (2) Indonesian

humanity is stated in Article 88 (2) of

Act number 1945 mentioning “…..and

Labor Law, but a decent or feasible wage is

decent livelihood for humanity”, this

not explained in this Act or in Government

sentence has the connection with the

Regulation 78. It only mentions that

previous one, regarding the right to have a

feasible income is a decent pay of the labor

job. In a job, there must be wage, which is

and

material payment which can be used to

for

his

family

(Article

4

(1)

Government Regu-lation 78.

finance the need of human such as food, cloth, and home. Constitution regulates that by working, the citizen is entitled to a

Wage Legal Policy Wage is the payment achieved by the labor after performing their obligation. Wage

must

be

correlated

to

decent life, so the wage should also be decent or feasible.

the

The exclamation on this can be

implementation of job as agreed between

found in Chapter X Indonesian Con-

the businessman and the employees, this is

stitution 1945 regarding Human Right,

the factor which becomes the character of

Article 28D states:

employment: the existence of job, order,

“each person is entitled to work, get

and wage (Article 1 (15) Act number 13 of

paid and treated fair and decent in

2003).

employment.”

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USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

respected, held in the highest esteem and protected by the state, law, Government, and all people in order to protect human dignity and worth.;

This article emphasizes that the right of a citizen to work is a human right, and also to be paid and treated decently. It is the basic human right. Human right is a right

Next Article 1 (6) states that :

attached to human which cannot be “Human rights violations mean all actions by individuals or groups of individuals, including the state apparatus, both intentional and unintentional, that unlawfully diminish, oppress, limit and/or revoke the human rights of an individual or group of individuals guaranteed by the provisions set forth in this Act, and who do not or may not obtain fair and total legal restitution under the prevailing legal mechanism.

neglected, even by the country, since it is given by God, so human right is supralegal, it doesn’t depend on the existence of a nation.8 World conference regarding Human Right in Vienna in 1993 developed one wider perspective regarding human right.9 Human right in wider perspective is including civil rights, culture, economy, politic

and

social

which

cannot

be The right to have a decent job and

separated, related to each other and depends to each other, and it is also regarding the responsibility of the private institution, not only the country.10 Indonesia accepts the perspective, and it can be seen from the provision given by Act number 39/1999 Article 1 (1): “Human rights mean a set of rights bestowed by God Almighty in the essence and being of humans as creations of God which must be

payment/wage is included in economic right,

then

6∎

(country,

law,

government, and private) is prohibited to take the human right away in order to sustain the honor and protection of the dignity of humanity.11 Wage legal policy is derived into wage policy by establishing minimum wage. Minimum wage is regulated in the regulation

8 In Arifin Ma’ruf. (2015). “Eksistensi Hukuman Mati, Panggung Hukum”. Jurnal Perhimpunan Mahasiswa Hukum Indonesia Cabang D.I Yogyakarta. 1(2). p. 280-295. . 9 It is being called as second generation of human right after Intenational Covenant on Cipil and Protection Political Right (ICCPR), it can be read in Ni Ketut Supasti Dharmawan. (2014). “Relevansi Hak atas Kekayaan Intelektual dengan HAM Generasi Kedua”. Jurnal Hukum Dinamika, Semarang, 14 (3): 519-527. 10 Judith Dueck et, al, in MM Bilah. (2013). “Tipologi dan Praktek Pelanggaran HAM di Indonesia.” Article. Conveyed in National Legal Development Seminar VIII BPHN Justice and Human Right Department RI. Jakarta.

anyone

of

Manpower

and

Transmigration Ministry number 7 of 2013 regarding minimum wage. Minimum wage is lowest monthly pay, containing main wage including permanent pay established by the governor (Article 1 (1)). 11

Read also Barzah Latupono. (2011). “Perlindungan Hukum Dan Hak Asasi Manusia Terhadap Pekerja Kontrak (Outsourcing) Di Kota Ambon.” Jurnal Sasi, 17 (3): 59-69.

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

The settlement of wage component

should be applied, to create harmonious

is not synergic to government regulation of

working vibe and to regulate waging based

wage number 78 of 2015 Article 5 (1). It

on skill and working time, and to enable the

mentions that wage component is including

companies to establish such structure and

wage without allowance, main wage, and

scale of wage for the employee who has

permanent allowance, or main wage with

been working for more than a year.

permanent and temporary allowance. It can

Minimum wage as the reference in

be seen that government regulation number

waging also flares up each year.12 The

78 of 2015 put in detail the wage

employee/labor hoped that the rise in wage

component with permanent allowance in

is to be adjusted to the daily needs and to

three kinds, and Labor Act number 13 of

the

2003 jo Regulation of Manpower and

employee/labor re-jected the provision in

Transmigration Ministry number 7/2013

Government

only mention that wage is including main

formulating the percentage of minimum

wage and permanent allowance (Article 1

wage rise based on inflation number, added

(30),

with

and

also, the Regulation of Manpower Transmigration

Ministry

economic

economic

improvement.13

Regulation

growth

The

78/2015

number.

The

number

employee/labor desired the esta-blishment

7/2013 mentions that minimum wage is the

of minimum wage by using Decent Life

lowest wage stands for main age, including

Need survey formula as regulated in Act

permanent allowance (Article 1(1)).

number 13 of 2003 of 60 items.

The complication of minimum wage

The comparison of number, in 2016,

policy is troubling the employee-/labor. In

if North Sumatera Province is to formulate

one side, the establishment of minimum

the minimum wage rise for 2017 based on

wage has the benefit to be made as safety

inflation number of 3.4% and economic

net of the lowest wage, to become the

growth rate of 4.8%, the rise of wage is

reference of the businessman in paying his

8.2%. in 2016, in 2016, Province Minimum

employees.

the

Wage of North Sumatra is approximately

disadvantaged are burdened to the union,

Rp. 1.8 million, which means it will rise for

On

the

other

side,

that is the big company which is capable to pay more than minimum wage hiding behind the policy, saying that they have done their obligation according to the rule of the government. Disclosure principle

12 It is becoming more interesting to discuss since the beginning of 21st century where the economic scholars discussed the Employees Market in formal and informal sector regarding minimum wage, it can be read in Mit Witjaksono. (2009). “Dualisme Pasar Tenaga Kerja dan Dampak Upah Minimum.” Jurnal Ekonomi dan Studi Pembangunan (JESP), 1(2): 67-69. 13 Press Conference KSPI, 26 October 2016.

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USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

only Rp. 170.000 (one hundred and seventy thousand rupiahs). If using the Decent Life Need survey formula of 60 items based on Labor Act number 13 of 2003, the minimum wage rise of 2017 should be in minimum of Rp. 650.000 (six hundred and fifty thousand rupiahs). The factual condition faced by the employee/labor

is

the

cause

of

demonstration in rejecting the Government Regulation number 78/2015 which is considered to be in contradiction on inconsistent with Labor Act as the main source

of

law

in

regulating matters

longer based on Decent Life Need; 2. It has reduced the role of Labor union in minimum wage establishment. The instrument to fulfill the decent life is the Decent Life Need formula. But with the existence of Government Regulation regarding wage, it is no longer used as reference to establish the minimum wage rise. Indeed, the amount of Decent Life Need will be reviewed in each five years. But since the minimum wage rise has been established only as big as the inflation rate and economic growth, the existence of Decent Life Need (though reviewed each five years) will be meaningless. This policy is deceiving.”

regarding employment, including wage. Government Regulation number 78/2015 regulates the rise in minimum wage based on national inflation number and national economic growth, even though the real situation faced by the employees is the rise of daily need, gas, electricity price. Jakarta Legal Aid Institution in its Press Release mentioned that Government regulation 78/2015 was unconstitutional, contradicts the Indonesian Constitution of 1945 and Labor Law number 13 of 2003:14 “Government Regulation number 78/2015 contained that the formula of minimum wage rise was established based on inflation and economic growth, this caused 1. Minimum wage establishment is no 14 LBH Jakarta. (2015). 5 reasons to reject Government Regulation regarding Wage (complete explanation) in http://www.bantuanhukum.or.id/web/5alasan-tolak-pp-pengupahan-penjelasan-lengkap/ (accessed 16 January 2017)

8∎

Labor Act Article 1 (3) states that wage is the right of the employee which is accepted in the form of money as the payment from the employer or businessman to the employee, esta-blished and paid according to the contract, agreement, or legislation, including allowance for the employee and his family regarding the job or service which will be performed. Article 4 d stated that employment development is to improve the prosperity of the employees and their family. This article is then derived in wage policy as can be seen in Article 88 (1): “each employee/labor is entitled to an income fulfilling a decent life for humanity.” Explanation of Article 88 (1):

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

“Income fulfilling adequate sustenance is the amount of revenue or income of workers/labor from results of their jobs so as to be able to meet the life need of workers/labor and their families reasonably, covering food and drink, cloth, housing, education, health, recreation and old-age insurance.”

of

2016

was

stating

that

there

is

unsynchronized between the regulation with Act number 13 of 2003 positioned above the regulation,15 so, based on legislation theory, this is not acceptable according to the principle of the lower legislation (hierarchically) may not violate

Article 89 (4), states that the components and the implementation in achieving the decent life need, will be regulated

with

Ministry

Decree.

The

practical rule was once regulated in Manpower and Transmigration Ministry Regulation

Number

PER.

17/MEN/VIII/2005 regarding Compo-nent and Application in Achieving De-cent Life Need which was replaced by Manpower Ministry Regulation number 21 of 2016,

the higher positioned legislation. Manpower Ministry

Regulation

number

21/2016

revised Manpower and Transmigration Ministry number 13 of 2002 completely regarding

the

component

and

implementation in achieving decent life needs.16 Legal policy should be used as the basis for the government to direct the policy and regulation to justice and to the national goal as mentioned in the Preamble of

th

enacted in July 10 2016. There

is

significant

Indonesian Constitution of 1945 in the difference

between Manpower Ministry Regulation number 13 of 2012 and Manpower Ministry Regulation number 21 of 2016. Even though both are the practical rule of Article 89 (4), but the regulation of 2016 wasn’t regarding

the

component

and

implementation in achieving decent life needs as mentioned in Article 89 (4) Labor

fourth paragraph: “Subsequent thereto, to form a government of the state of Indonesia which shall protect all the people of Indonesia and all the independence and the land that has been struggled for, and to improve public welfare, to educate the life of the people and to participate toward the establishment of a world order based on freedom,

Act, but it is regarding to the decent life needs according to Government Regulation number 78 of 2015. The respond of the employees on Manpower Ministry Regulation number 21

15 http://www.beritasatu.com/ekonomi/375974kemnaker-diminta-tinjau-ulang-permenaker-nomor212016-tentang-khl.html (accessed 25 January 2017). 16 Article 2 and in Attachment regarding components of Decent Life Needs in the Ministry of Manpower and Transmigration Regulation number 13/2012 which wasn’t revised.

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USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

perpetual peace and social justice.. “

education (for his children) and for his saving).17 As comparison, if we use Islamic

The role of the country as the mediator between the purposes of the employees and businessman shouldn’t clash with the principles of legislation. This is similar to the domination politic of law, even though in a state of law, law as the fighter should be assisted by law forming with the goal of

teaching, Rasulullah SAW has ever stated that the employer who is considered as the user of the service of the abor should treat the employee as a brother whom he adopts, so he should provide for what the employee needs, including in what food should be served, or cloth to wear decently, measured

justice, certainty and expediency.

with the real condition at the time. Hadith Fair and Decent Wage for Humanity Decent life need is a standard of the

by Abu Dzar bahwa Rasulullah s.a.w stated: “They (the servants) are your brother, Allah placed them under your care; anyone who has their brother under their care must feed them right, dress them properly; and do not burden tem with something they cannot, and if you are to burden them, the you shall help them do it.”(HR. Muslim).

need of a single employee to be able to live physically decent

in

1

(one)

month

(Manpower Ministry Regulation number 21 of 2016) with the formula of minimum wage calculation, which is annual minimum wage added with the amount of minimum wage timed with national inflation rate in

The character of Rasulullah in this

the year and domestic gross growth rate in the year.

hadith is clearly regarding the employers

Feasible wage, though undefined in

(or businessman) who must provide decent

standard, it basically measured based on the

wage, both in material and the burden of the

market condition, it means that it can be

job. All must be measured proportionally.

measured by the amount of money accepted as payment on the job performance to fulfill the need of food, cloth, and home, which three are the basic needs oh human. But if we considered further in this modern era, it should be added with the expense of

10 ∎

17

Asri wijayanti even asserted the reference of decent life need should describe the rate of the employees’ prosperity, it was worried that Indonesia will be labeled as a country with dumping on the wage of the labor, read in Asri wijayanti. (2007). “Upah dan Ketidakadilan”. Yustitia, Jurnal ilmiah Fakultas Hukum Universitas Muhammadiyah Surabaya, 1(2). HP Radjaguguk dalam Agusmidah. (2007). Politik Hukum dalam Hukum Ketenagakerjaan Berdasarkan Peraturan Perundangundangan di Indonesia. Dissertation, USU, Medan p. 318, also asserted that employment practice included in dumping category will be the reason of the country to be rejected in trade and economy relation with other countries..

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

Thre shouldn’t be a too wide gap between

Fair in wage or payment means that

the income of the employers and the

the amount must be adjusted to the burden

employee, since the prosperity of the

of the job, and to the working time duration

employers should be felt by the employees

of the employee, as the sign of loyalty to

too by giving them decent pay.18 Further

the

definition, rights in wage means that we

management, this is translated as equal pay

shouldn’t hire someone and pay them far

for equal job. If there are two persons

from common payment. Common payment

doing the same job, their pay must be

means the law of the market on the amount

equal, this principle has even become the

of the payment or wage at the moment.

result of International Labor Organization

When wage is regulated with minimum

(ILO)

wage, it is considered as the market

equality.19

employers.

regulates the wage.

Number

According

100

to

regarding

general

wage

When the employee is unable to

The context is that the establishment

finance his needs as human, and he is even

of wage should be adjusted to market

unable to provide benefit for the country in

condition, so that the amount of wage can

income tax, factually, the employee is not a

be used by the employees for his daily

productive citizen in contributing to the

need. It means that wage is essentially

treasury fund. In Islam, the obligation to

concerning two factors, objective and

pay tax is formulated by appointing the

subjective factors. Objective factor means

nisab of professional zakah (alms), 520

that the wage will be decided through the

times (x) the price of rice per kg. If the

consideration of wage rate in labor market.

price of rice is Rp. 8000,00, the nisab of

And subjective factor is that the wage will

professional zakah is Rp. 4.160.000,00, this

be

social-humanity

is almost similar to taxable income.

consideration. All this time, conventional

Without debating which one is the main

economy has the opinion of wage is to be

one, the formulation is only to show that the

decided with consideration of wage rate in

minimum wage today is under the number

labor market.

of taxable income and it cannot be said as

appointed

with

feasible wage. 18

Wage of the employees is not only for minimum needs in his life, so that the productivity will be all for opportunity cost, and he will not be able to enjoy economic rent, read in M. Ghufron. (2011). “Politik Negara dalam Pengupahan Buruh di Indonesia.” Al Daulah, Jurnal Hukum dan Perundangan Islam, 1(2): 109-134.

19

ILO, Asian Decent Work Decade 2006-2015, Panduan: Kesetaraan dan Non Diskriminasi di Tempat Kerja di Asia Timur dan Tenggara, accessed with http://www.ilo.org/wcmsp5/groups/public/---asia/---robangkok/---ilojakarta/documents/presentation/wcms_203602.pdf. (accessed 1st Februari 2017).

∎ 11

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

The unfortunate thing is that with

Workers as citizens do not have an

the waging regulation enacted by the

important role to increase the income of the

government with Government Regulation

state, so the position remains a minor

78/2015, not even to adjust the number of

compared to other citizens. Regulation of

taxable income, to reach the number to

remuneration in Government Regulation

fulfill the real needs is even harder

no. 78 of 2015 increasingly endorses that

especially with the rising price. In one side,

the wages of workers / laborers are included

the employees said that the rise in 2017

in PTKP.

should reach the number of six hundred thousand rupiahs (Rp.600.000,-) based on

BIBLIOGRAPHY

the calculation with decent life needs

Books:

component,

E

but

with

Government

regulation 78/2017, the rise

is

only

approximately one hundred and seventy thousand rupiahs (Rp.170.000,-).

Utrech,

Pengantar

Dalam

Hukum

Indonesia, 1966, Ichtiar, Jakarta. R

Santoso Brotodihardjo. (2003). Pengantar Ilmu Hukum Pajak. Bandung: Refika Aditama.

Facing the national, regional, and global economy, Indonesia mustn’t known as a country with low wage rate compared with other countries, so Indonesia will not be considered disobeying international labor standard by applying low wage system or even legal slavery. It is time to review the feasible and humane minimum wage establishment system.

CONCLUSION Wages can be measured using PKP numbers. Whereas the amount of wages determined by the government is not included in the category of taxable income, so the fact has not yet fulfilled the proper wage.

12 ∎

Journal Articles: Arifin Ma’ruf. (2015). “Eksistensi Hukuman Mati” Panggung Hukum, Jurnal Perhimpunan Mahasiswa Hukum Indonesia, Cabang D.I Yogyakarta. 1 (2): 280-295. Asri wijayanti. (2007). “Upah dan Ketidakadilan”. Yustitia, Jurnal ilmiah Fakultas Hukum Universitas Muhammadiyah Surabaya. 1 (2). Barzah Latupono. (2011). “Perlindungan Hukum Dan Hak Asasi Manusia Terhadap Pekerja Kontrak (Outsourcing) Di Kota Ambon”, Jurnal Sasi, 17 (3) : 59 Gorby Jonathan, Achmad Husaini, Sunarti. (2014), “Pengaruh Kenaikan Penghasilan Tidak Kena Pajak (PTKP) Terhadap Peningkatan Daya Beli Masyarakat di Daerah Kabupaten Kediri”, Jurnal e-Perpajakan, 1 (1): 1-8 Ni Ketut Supasti Dharmawan. (2014). “Relevansi Hak atas Kekayaan Intelektual dengan HAM Generasi

USU Journal of Legal Studies ∎ Vol.1 Issue 1, March (2017)

Kedua”, Jurnal Hukum Dinamika, Semarang, 14 (3): 519-527. Mit Witjaksono. (2009). “Dualisme Pasar Tenaga Kerja dan Dampak Upah Minimum”, Jurnal Ekonomi dan Studi Pembangunan (JESP), 1 (2): 67-73 M. Ghufron. (2011). “Politik Negara dalam Pengupahan Buruh di Indonesia”, Al Daulah, Jurnal Hukum dan Perundangan Islam, 1 (2): 109-134 Dissertations and Papers: Agusmidah. (2007). “Politik Hukum dalam Hukum Ketenagakerjaan Berdasarkan Peraturan Perundang-undangan di Indonesia". Disertasi, Law Faculty USU, Medan. MM Bilah. (2013). “Tipologi dan Praktek Pelanggaran HAM di Indonesia”. Makalah Disampaikan Dalam Seminar Pembangunan Hukum Nasional VIII, BPHN Departemen Kehakiman Dan Hak Asasi Manusia RI.

KBBI Daring in kbbi.kemendikbud.go.id (accessed 20 January 2017). LBH Jakarta, 5 Reasons to reject Waging Government Regulation (complete explanation) in http://www.bantuanhukum.or.id/web/ 5-alasan-tolak-pp-pengupahanpenjelasan-lengkap/ (accessed 16 January 2017) Nuritomo, Pengaruh Peningkatan Penghasilan Tidak Kena Pajak Terhadap Penerimaan Pajak Studi Pada KPP Yogyakarta Satu, dalam http://e-journal.uajy.ac.id/7780/ (accessed 25 January 2017) Press Release KSPI, 26 October 2016.

Website: http://www.kemenkeu.go.id/Berita/mulaijanuari-2016-ptkp-naik-jadi-rp54juta-tahun (Accessed 29 January 2017) http://www.kemenkeu.go.id/Berita/realisasi -pendapatan-negara-2015-capairp14915-triliun%3Ftag%3Danggaranapbn-p-2015-pendapatan (accessed 25 January 2017). http://www.beritasatu.com/ekonomi/37597 4-kemnaker-diminta-tinjau-ulangpermenaker-nomor-212016-tentangkhl.html (accessed 25 January 2017). ILO, Asian Decent Work Decade 20062015, Panduan: Kesetaraan dan Non Diskriminasi di Tempat Kerja di Asia Timur dan Tenggara, accessed with http://www.ilo.org/wcmsp5/groups/pu blic/---asia/---ro-bangkok/---ilojakarta/documents/presentation/wcms _203602.pdf. (accessed 1 February 2017). ∎ 13

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minimum wage and non-taxable income: to measure fair and feasible

UJLS Volume 1 Issue 1, March 2017: pp. 1-13. Copyright © 2016 2017 UJLS. Faculty of Law, University of Sumatera Utara, Medan, North Sumatera, Indones...

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