Procedures for the Imposition of Administrative Sanctions Relating to Wages

The Minister of Employment (“Minister”) has issued Regulation No. 20 of 2016 (“2016 Regulation”) on Procedures for the Imposition of Administrative Sanctions as Stipulated in Government Regulation No. 78 of 2015 on Wages (“78/2015 Government Regulation”). [1] The 2016 Regulation implements Article 59 (3) of the 2015 Government Regulation, which mandated for the Minister to set out further provisions relating to the procedures for the imposition of any administrative sanctions as a result of non-compliance with wage requirements. [2] The 2016 Regulation is of relevance to all employers and workers in Indonesia.Administrative SanctionsThe 2016 Regulation states that employers are to be subject to administrative sanctions if they commit any of the following actions: [3]