Employment regulations require companies to provide work benefits for their workers, but each company has its own policies, for example position benefits which are often provided by companies for workers who occupy certain positions.

 

There are 2 types of position allowances, namely usually just called position allowances because they relate to industrial activities or businesses and position allowances for civil servants. If you want to know what position allowances are, the types and value of position allowances imposed on each entity, keep reading this article until the end to get in-depth information.

 

What is Position Allowance?

 

Before discussing position allowances, we will first discuss what allowances are and the regulations that regulate them. The allowance itself is additional income outside of salary for workers/laborers and their families for work and/or services that have been or will be performed by the worker/laborer. Circular Letter of the Minister of Manpower Number SE-07/MEN/1990 concerning Wage Grouping (SE-07/MEN/1990) states that allowances are intended to stimulate, encourage workers to be more disciplined, diligent and productive.

 

The benefits that workers can receive are divided into two types, namely fixed benefits and non-fixed benefits. SE-07/MEN/1990 provides a detailed understanding of these two types of allowances, as follows:

 

Fixed Allowances are fixed/routine payments related to work that are given regularly to workers and their families. This fixed allowance is not influenced by attendance, performance or achievement factors.

 

Non-Fixed Allowances are payments that are irregular and provided on an irregular basis to workers. The amount is influenced by hourly, daily or according to agreement calculations.

 

So What is a Position Allowance?

 

Position allowance is a type of allowance given to employees who have certain positions in the company, usually the higher the position, the greater the allowance they get. This allowance is provided to support the responsibilities carried out by workers. This type of allowance is often called a functional allowance. The monthly allowance is given along with the salary and is one of the payroll components. Position benefits are easy to find in private and government companies. Position allowances related to industrial relations are usually given by companies to employees who have certain positions within the structure of the company or business organization. 

 

For example supervisors, managers and branch heads. Meanwhile, position allowances for civil servants or government officials are given to people who have positions such as director general, bureau head, service head and functional positions; such as teachers, lecturers, researchers, and the like. This allowance is given based on a person's position in a company or business organization. Generally, the higher the position or position of the person, the greater and heavier the responsibilities he or she carries. Therefore, companies provide facilities in the form of additional salaries in order to give appreciation and compensation to their workers which are known as position allowances.

 

Is this Allowance Included in the Salary Component?

 

Are position allowances included in the salary component or are they separate? The answer is that it is included in the salary component because it is given along with the wages the employee receives every month. This allowance basically adds to the nominal salary that the employee will receive because it is a fixed allowance. Therefore, employee benefits are not affected by the number of absences of the employee.

 

So, does every company have an obligation to provide job fees? Technically, the company is not obliged to provide it. This policy of course refers to applicable regulations, namely Government Regulation Number 78 of 2015 concerning Wages. The regulation states that wages can consist of components of a basic salary and fixed allowances or basic salary, fixed allowances and non-fixed allowances. In the calculation, the most important thing is in total wages, the minimum basic salary is 75% of the wages and fixed allowances provided. Furthermore, the details are up to company policy, in the sense that the company may provide certain allowances and then mention them in the pay slip or not mention them because they are already included in the total calculation.

 

Why are job benefits important?

Companies can provide this type of benefit to motivate employees to work better and increase discipline. In the end, employees are able to work more productively because they are motivated. Companies will usually promise greater benefits if employees are able to achieve certain work achievements so that they can work better and provide optimal results for the company. These benefits can also help employees to improve their lives. Employees will feel cared for if the company provides benefits that are appropriate and commensurate with their performance. Providing benefits is also an effective way to maintain employee loyalty. Employees will automatically feel safe and comfortable when the company provides appropriate benefits. Employees who feel safe and comfortable while working can foster better communication and relationships with other employees. A conducive work environment will be created by itself. All of these things will lead the company to success in achieving its vision and mission.

 

Providing allowances can also attract quality candidates to join the company. How could that be? So, employees who are comfortable working at a company will definitely recommend the company to their friends who are looking for work.

 

Because they are interested in the benefits offered, candidates will apply to the company. This really helps companies to get the best candidates for various positions that the company needs.

 

Regarding Various Types Of Job Allowances

 

There are two types of allowances that will be given to government agencies or organizations, namely structural allowances and functional allowances.

 

The following is a complete explanation of the two types of benefits along with their differences:

 

Structural Allowances

 

This allowance is given to someone who has a position within the structural framework of an organization that has certain strata. Examples of structural allowances are allowances for bureau heads, director generals and service heads.

 

Functional Allowance

 

This type of allowance is given to someone based on their expertise and skills. Examples are analysts, auditors, teachers, researchers, doctors and so on. On the other hand, in companies or private entities there is only one type of allowance, namely position allowance. Usually this type of allowance will be given to people in certain positions such as branch heads, section managers, supervisors and others.

 

How Much is the Position Allowance?

 

In the Employment Law and other regulations in Indonesia regarding the provision of wages, there is no mention of the amount and mechanism of position allowances. Actually, this happens because here only two allowances are known, namely fixed and non-fixed allowances as we have discussed above. So, not all amounts of allowances given to certain positions can be known in nominal terms.

 

So as a reference, we will use an example of an amount that is generally known, namely allowances for civil servants or government employees. As an example and reference is the amount of allowances for Civil Servants that apply in Indonesia. Decisions regarding the amount of employment benefits are usually given in Presidential Regulations, the number of which depends on the section in which the decision is intended. In the APBN Analysis section, the budget provided is approximately the following:

 

Skill Level

 

Main Expert / Main Archivist Level: Rp. 1,300,000,-

 

Intermediate Expert / Intermediate Archivist Level: IDR 1,100,000

 

Young Expert / Young Archivist Level: IDR 800,000

 

First Expert / First Archivist Level: IDR 520,000

 

Skill Level

 

Supervisor / Archivist Supervisor Position Level: Rp. 700,000,-

 

Position Level Advanced Executive / Advanced Archivist: IDR 420,000,-

 

Skilled Executive / Archivist Position Level: IDR 350,000,

 

This information can be accessed in more detail on the setkab.go.id page. This page contains various regulations regarding position allowances for civil servants or ASN according to class. Meanwhile, for private companies, the amount of allowances given to each position is not known for certain or is the company's own internal policy. This policy is completely given to the company because the company is considered to know best the circumstances and conditions facing the company. This is logically more profitable because the amount determined will refer to the company's economic situation and the environment.

 

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