Are You Working in Hospitality Industry? Here's The Rule of Its Salary

Do you work as a housekeeper in a hotel? Or are you working as a receptionist in one of the biggest resorts in Jakarta? Either way, you obviously have gotten some service money or tips from the guests when you get the job done.

Nice money right? But, have you ever been told by your boss that your tips are part of your salary? If you have, then you're not alone. Because something like this is actually always happening. 

And of course, employees are the party that is the most affected by this. However, you can tell your boss or your head HR the truth that what they've been doing is against the rule. And here's why.

Minimum Wage Rules

The minimum wage is the lowest monthly wage, whether it be in the form of basic wages with fixed allowances determined by the governor as a safety net or basic wages without allowances. Paying employees less than the minimum wage is against the law.

The Job Creation Law (UU Cipta Kerja) and the Manpower Law's (UU Ketenagakerjaan) revised, deleted, or added provisions for the minimum wage are differentiated as follows:

1. City or District Minimum Wage

The minimum salary that applies to a district or city's whole territory is known as the Regency/City Minimum Wage (UMK).

1. Provincial Minimum Wage

The Provincial Minimum Wage (UMP) is the base wage that is mandated for all towns and districts located within a single province.

The governor is required to choose the UMP. In addition to the UMP, the governor may also decide the UMK under certain circumstances, such as inflation in the relevant region or city. The UMP cannot be lower than the given UMK.

Components of Your Salary

If you are paid the minimum wage, then here are the two components of your salary:

1. Wages without benefits; or

2. Basic wages and fixed allowances.

A component of pay in the form of fundamental compensation that is provided to workers according to the kind or degree of labor for which the quantity has been established in accordance with the agreement is known to as the basic wage.

While Non-permanent allowances are parts of salaries that are paid directly or indirectly, belong to employees, and are provided to employees and their families on a non-permanent basis without being paid in combination with basic pay. 

Fixed allowances are recurring payments to employees that are not dependent on their presence or the accomplishment of certain job goals.

Is Your Tips Part of Your Salary?

Service money or tips for employees working in hospitality industry, like hotel, are stated in Regulation of the Minister of Manpower Number 7 of 2016 concerning Service Fees for Hotel Business and Hotel Restaurant Business (Permenaker No. 7 Tahun 2016). 

In addition to the tariff that was previously decided in the context of services for the hotel business and the restaurant business within the hotel, service fees are also calculated. Service fees are non-wage payments made to employees who have a working relationship with employers based on a PKWTT or a specific time work agreement (PKWT).

Provisions for the distribution of hotel service fees in which the employer collects and manages service fees prior to distribution. Every month before service fees are paid out, the employer will notify the workers in writing of the results of service fee management and collection.

So, it can be said that the service charge is not included in the minimum wage. Consequently, when determining how much minimum wage to pay employees, employers are not allowed to put in the service charge component.