Consider an Employee Employment Contract With These 9 Things
Mei 28th 2023 - 4 min read
Who must claim several salaries and benefits before signing an employee employment contract? As employees, we have certain rights under labor laws. It would help if you ensured that your first job meets expectations and doesn't violate human resources laws. It's fun to live with, but you'll find that employment contracts have a lot of quirks.
Here are some things you should know about employee salaries and benefits before signing an employee employment contract.
1. How much is the basic salary, and how much is the take-home pay?
Base salary is our core salary as workers. At the same time, take-home pay is the total salary, including allowances, transportation, and others.
These two things are different. When giving holiday allowances (THR), for example, what is calculated is the basic salary. Base salary must also be above the regional minimum wage (UMR), or at least equal. If it is less than the UMR, we can ask questions. It is because the company violates the rules regarding the provision of employee salaries according to the UMR.
2. Who pays income tax (PPh)?
Paying income tax (PPh) is our obligation as citizens who earn income. Most large-medium-class companies have tax staff who take care of paying income tax.
So, the salary we receive per month is tax-deductible. But some don't have it, so we have to pay our taxes per month. It must be ensured first in the employee employment contract so that there is no misunderstanding.
3. Is there BPJS and additional insurance?
According to Presidential Regulation (Perpres) No. 111 of 2013, which regulates the amendment of Presidential Regulation No. 12 of 2013 concerning Health Insurance, employers must register their employees with BPJS Health and Employment. Once registered, contributions are shared between the worker and the company.
The ratio of BPJS Health contributions is 5 percent of salary, of which the company pays 4 percent, and 1 percent is deducted from salary. Meanwhile, BPJS Employment contributions are 3 percent of wages, namely 2 percent paid by the company and 1 percent paid by workers.
Also, find out if the company provides additional private insurance. With other insurance, we can go directly to the hospital for treatment. Meanwhile, with BPJS, you have to go through the clinic first to get a referral.
4. What is the pay date?
Payday dates are essential for planning the finances for the month ahead in the employee's employment contract and paying credit card bills or other installments. If it's the 27th of every month, it should be 27 in the morning the salary should have arrived. If the paycheck arrives late, financial plans can fall apart.
5. THR and bonuses?
THR should be obtained every year because it is regulated in the Manpower Act. The minimum amount is 1 x basic salary. At the same time, the bonus is the authority of the company. Is bonus, how many times it is given, and how the criteria for the compensation can be liquidated.
Some make sure the bonus goes down at least one time a year, or even more. But some cannot be sure, depending on the company's performance. That's fine because the company is fully authorized to regulate bonuses.
6. What are the chances of a raise?
Even though you want to enter, this question also needs to be answered. Do not let it be years of work; salary does not go up.
Ask about the salary increase mechanism, calculated based on anything in the employee's employment contract. Is it just inflation or work performance as well? Also, know whether there is a minimum percentage increase in salary each year.
7. Job evaluation
Job appraisal is essential to us as employees. In addition to identifying and correcting deficiencies, this evaluation is used as a benchmark for salary increases.
If there is no evaluation, we will lose. The transparency of evaluation results also needs to be ensured, so that is no suspicion between the company and us.
8. The benefits are available to employees with what status?
In the world of work, at least three stages need to be passed: probation or trial, contract (sometimes probation includes warranty), and permanent. Generally, the benefits increase as the work stage passes.
Ask employees with what status can enjoy all the benefits above. Do not be sure to get insurance; it turns out that this facility is only provided if you are a permanent employee.
Sometimes some things make us want to resign before the work contract runs out. The problem is, some companies impose penalties even though they are not regulated by law. Check whether there is a penalty. If so, how big. It would be ridiculous if, for example, our salary was Rp. 4 million, but when we resigned in the 5th month of the contract period, we were asked to pay a penalty of Rp. 100 million.
Those are some things you need to pay attention to before signing an employee employment contract. Continue to improve the skills you have to get your dream job with Qneks. For more detailed information, click the CTA below!