Simplify Your Employee Wage Structure & Scale
Comply with The Rules
Gadjian helps companies comply with their obligations under applicable laws and regulations, namely the Regulation of the Minister of Manpower (Permenaker) No. 1 of 2017.
Easy to Understand for HR Beginners
Gadjian is designed to be easy to use, even for HR beginners. The SSU feature in Gadjian is packaged simply and easy to understand.
Save Company Budget
With Gadjian, companies can save money on creating SSUs. Gadjian offers affordable prices that can be customized to the needs of the company.
FAQs About Gadjian, the All-in-One HR Solution
What is a salary structure and scale?
A salary structure and scale is an arrangement of wage levels from lowest to highest based on job grades within a company. It defines a pay range (minimum to maximum) for each job grade, taking into account factors such as position, length of service, education, and employee competency.
Are companies in Indonesia required to create a salary structure and scale?
Yes, every company in Indonesia is required to formulate and apply a salary structure and scale for its employees. This obligation is set out in Minister of Manpower Regulation (Permenaker) No. 1 of 2017, and the structure must be communicated to all employees and established through a company leadership decree.
What is the legal basis for a salary structure and scale in Indonesia?
The legal basis is Minister of Manpower Regulation (Permenaker) No. 1 of 2017 on Salary Structure and Scale. It implements Article 92 of Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages, and it replaces the earlier 2004 ministerial decree on the same subject.
How do you create an employee salary structure and scale?
You create it by listing all positions, grouping them into job grades, and then setting the minimum and maximum pay range for each grade. With software like Gadjian, you simply enter your employee data and the system automatically designs the structure, job grades, and salary ranges with no manual calculation needed.
What is a job grading system in a salary scale?
A job grading system groups positions with relatively similar duties and responsibilities into a single job grade. Each grade has its own pay range, and the number of job grades is generally recommended to stay under ten so the structure remains simple and easy to manage.
Is Gadjian's software compliant with Permenaker No. 1 of 2017?
Yes, Gadjian's salary structure and scale calculation is aligned with Permenaker No. 1 of 2017. The system helps you build job grades and pay ranges according to the applicable rules, making it easier for your company to meet compliance requirements without manually studying the formulas and regulations.
Can junior HR staff create a salary structure and scale with Gadjian?
Yes. Gadjian is designed to turn a complex salary structure into something simple, so even junior HR staff can build one. You don't need to learn various formulas—just fill in the employee data and the system handles the calculations.
What are the benefits of using salary structure and scale software?
The main benefits are saving time and money, since you don't need to hire an HR consultant to build employee grades. The software simplifies a complex process, keeps your pay structure compliant, and makes setting job grades faster and more transparent.
What are the sanctions for not having a salary structure and scale?
Companies that fail to formulate and apply a salary structure and scale may face administrative sanctions under the applicable wage regulations. Beyond the risk of sanctions, the absence of a clear pay structure can also lead to employee dissatisfaction and disputes over pay fairness.
Design and Manage Your Wage Structure Efficiently.
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