Strengthening Fair Remuneration and Employee Welfare through Wage Regulations and Institutional Salary Governance
Syarif Hidayatullah State Islamic University Jakarta recognises fair remuneration and employee welfare as important foundations of decent work, institutional sustainability, and the delivery of quality higher education. The University acknowledges that providing appropriate compensation for academic and administrative personnel is essential to supporting their livelihoods, professional well-being, and continued contribution to teaching, research, community engagement, and institutional services.
During 2024–2025, UIN Jakarta operated within Indonesia's national public-sector salary framework while maintaining institutional remuneration arrangements for employees under its Public Service Agency (Badan Layanan Umum, BLU) management structure. The University also maintained financial reporting mechanisms that documented salary expenditure, allowances, lecturer remuneration, and personnel-related financial management. These arrangements establish a regulatory and administrative foundation for assessing fair remuneration under Sustainable Development Goal 8: Decent Work and Economic Growth.
1. Recognising Local Minimum Wage Standards
UIN Jakarta's main campus is located in Ciputat, South Tangerang City, Banten Province. Accordingly, the minimum wage established for South Tangerang City is an important local reference when assessing remuneration for relevant employment categories.
The Banten Provincial Government established the 2024 South Tangerang City Minimum Wage at IDR 4,670,791 per month. For 2025, the Provincial Government issued Governor's Decree Number 471 of 2024, establishing the South Tangerang City Minimum Wage at IDR 4,974,392.42 per month. These wage standards provide locally established benchmarks for assessing compensation within the applicable employment framework. The University recognises the importance of considering local wage standards when evaluating employee compensation and financial welfare. However, the statutory minimum wage and the living-wage criterion used by THE Impact Rankings must be distinguished where their methodologies differ.
A comprehensive assessment must consider an employee's applicable employment regulations, remuneration components, working hours, and the relevant living-wage benchmark.
2. Applying National Salary Regulations for Civil Servants and Government Employees
As a state Islamic university, UIN Jakarta employs personnel under different employment arrangements, including civil servants and other categories of government and non-government employees. The remuneration of eligible civil servants is regulated nationally through Indonesia's civil service salary framework.
Government Regulation Number 5 of 2024 amended the salary schedules for civil servants, updating their basic salary structure with effect from the 2024 financial year. The changes formed part of the national government's efforts to improve public-sector employee welfare and remuneration. Similarly, Presidential Regulation Number 11 of 2024 amended the salary and allowance provisions applicable to Government Employees with Employment Agreements (PPPK). These regulations provide formal salary structures for their respective employment categories.
For academic and administrative personnel at UIN Jakarta who fall within these categories, the applicable national regulations establish the framework governing basic salary entitlements. Additional allowances and remuneration arrangements may apply depending on employment status, position, eligibility, and institutional regulations. The existence of these salary regulations provides a formal basis for employee remuneration, although verification against local living-wage standards requires examination of actual total compensation.
3. Managing Remuneration through the University's Public Service Agency
UIN Jakarta operates under a Public Service Agency financial management framework that supports the delivery of higher education services and institutional operations. Within this framework, employee remuneration may include basic salaries, applicable allowances, professional compensation, and performance-related payments.
The University has a documented history of implementing remuneration arrangements for permanent academic personnel, including civil servant and non-civil servant lecturers. Its remuneration approach recognises professional duties, academic workloads, and performance-related considerations. The University's 2025 institutional financial reporting continued to identify salary payments, employee allowances, lecturer certification payments, remuneration, and additional academic assignments among its expenditure activities.
These arrangements demonstrate that compensation is administered through multiple relevant budget and employment mechanisms. They also highlight the importance of examining each employee's full remuneration package rather than relying exclusively on a published basic salary schedule.
4. Establishing Salary and Allowance Guidelines for University Business Units
The University strengthened its internal salary governance through Rector's Decree Number 690 of 2025 concerning Guidelines for the Management of Salaries and Allowances for Employees of the Technical Implementation Unit for Business Development. The decree was issued on 13 August 2025, with its provisions applying from 1 January 2025. The regulation establishes administrative procedures for salary management, salary payment, attendance-based calculations, allowances, and selected employee benefits. It also explicitly references the applicable district or city minimum wage as a consideration in salary determination.
The regulation distinguishes different employee categories within the University's business units and establishes maximum basic salary parameters expressed as percentages of the local minimum wage. For probationary employees, the maximum basic salary parameter is 75% of the applicable minimum wage. For employees assigned to business units, the parameter is 90%, while the specified category of employees assigned to the Business Development Unit has a maximum parameter of 100%. These provisions demonstrate the existence of a formal salary administration framework, but they do not by themselves demonstrate that every employee receives at least the local minimum wage.
An assessment of compliance with the living-wage criterion therefore requires examination of actual remuneration, including applicable allowances, working hours, and employment arrangements. The regulation provides an important document for reviewing the University's wage-setting practices and identifying areas requiring further assessment.
5. Documenting Salary and Employee-Related Expenditure in 2025
The University's 2025 Performance Report provides additional evidence of institutional financial management relating to personnel compensation. The report records an employee expenditure allocation of IDR 218,726,942,000, with realised expenditure of IDR 216,759,906,930, equivalent to 99.10% of the allocated budget. The report identifies regular salary and allowance payments for civil servants and professional certification payments for eligible non-civil servant lecturers.
It also identifies lecturer remuneration and additional academic assignments within the relevant expenditure categories. This reporting demonstrates that employee compensation formed an identifiable and substantial component of the University's annual financial management activities. The University's monitoring of budget allocations and actual expenditure supports financial transparency and institutional accountability. However, aggregate employee expenditure cannot establish whether each individual staff or faculty member received remuneration at or above the applicable living-wage benchmark. Individual or employment-category-level verification is necessary to assess the distribution and adequacy of compensation.
6. Strengthening Employment Governance in 2025
During 2025, the University also implemented institutional employment governance measures affecting personnel in affiliated educational units. On 22 November 2025, UIN Jakarta formally presented appointment decisions to hundreds of personnel from educational institutions integrated into its BLU governance structure. The process followed Minister of Religious Affairs Decree Number 1543 of 2025 concerning the integration of educational institutions into UIN Jakarta's BLU management. University leadership stated that the integration was intended to establish consistent management arrangements, including personnel policies, salaries, and honorarium administration.
The initiative demonstrates continued institutional attention to employment status, administrative consistency, and employee welfare. Nevertheless, confirmation of living-wage compliance for newly integrated personnel requires examination of their applicable employment arrangements and actual remuneration.
7. Strengthening Verification of Living-Wage Compliance
THE Impact Rankings Indicator 8.2.1 requires evidence that all staff and faculty receive at least the applicable living wage. Meeting this requirement involves more than demonstrating that salary regulations and payment systems exist. The University must be able to demonstrate that remuneration for the relevant employees meets or exceeds the applicable benchmark, considering working hours and the appropriate compensation components.
A comprehensive review should therefore examine civil servants, PPPK employees, non-civil servant lecturers, BLU personnel, and other relevant staff categories according to their employment arrangements. Such an assessment should use anonymised payroll information or officially certified remuneration summaries rather than publishing employees' personal salary records. The reviewed documentation establishes the existence of salary governance, remuneration expenditure, and relevant wage benchmarks during 2024–2025. However, it does not yet provide a complete verification that every staff and faculty member meets the living-wage threshold.
8. Contribution to SDG 8: Decent Work and Economic Growth
Syarif Hidayatullah State Islamic University Jakarta has established multiple regulatory and administrative mechanisms relating to employee remuneration and financial welfare. These include national salary structures for government personnel, institutional BLU remuneration arrangements, internal salary administration guidelines, and annual monitoring of personnel expenditure. The University's 2025 Performance Report documents salary and allowance expenditure, while Rector's Decree Number 690 of 2025 demonstrates formal salary governance within the University's business-development units.
Together, these measures provide a documented framework for managing employee remuneration and supporting financial accountability. The available evidence demonstrates that UIN Jakarta maintains formal salary-management arrangements and recognises local minimum wage standards as relevant to its remuneration governance. Further verification of actual compensation across all employment categories is required before confirming that the University meets the full living-wage requirement of THE Impact Rankings Indicator 8.2.1. Strengthening this verification would contribute to the University's commitment to decent work, employee welfare, and sustainable institutional development under Sustainable Development Goal 8.
Source :
https://bantenprov.go.id/index.php/berita/umk-banten-naik-65-persen-berikut-daftar-besaran-umk-banten-tahun-2025
https://asset.uinjkt.ac.id/uploads/TkyZgnBj/2025/10/skrekt1.PDF
https://asset.uinjkt.ac.id/uploads/assets/pengumuman/Laporan_Kinerja_Universitas_2025___PUBLISH.pdf
https://peraturan.bpk.go.id/Details/276755/pp-no-5-tahun-2024
https://www.uinjkt.ac.id/id/realisasi-kma-integrasi-rektor-uin-jakarta-serahkan-sk-pegawai-satuan-pendidikan