Study of Minimum Wage Comparison in Indonesia with Malaysia in Perspective of Islamic Economics
Irfan Jauhari, Sri Herianingrum, Tika Widiastuti

Universitas Airlangga

Abstract

The minimum wage policy in Indonesia has been set since 1970, undergoing several changes to the latest government rule number 78 of 2015. The minimum wage in Malaysia is set to begin in 2011, implemented in 2012, and amended by 2016. The purpose of this study is to know the wage model of both countries and how if viewed in the perspective of Islamic economics. This study used a qualitative approach using literature analysis techniques. The results of this study indicate that both countries in providing wages are in accordance with what is in Islamic economics. First, wages for workers in both countries are fair. Second, wages in both countries are feasible because in the wage-related policy-making process it always considers the needs of the workers. Third, wages are paid with no delay.

Keywords: Minimum Wage in Islamic Perspective, Indonesia, Malaysia

Topic: Organizational Behavior, Leadership and Human Resources Management