Bali's Governor told those attending his monthly open-house town meeting he wants to see every worker in the tourism sector to earn a minimum Rp. 10 million ( US$870) per month. Adding: “In principle, I want to see workers in Bali prosper. Don't let them suffer privations, even though (the privations) are permitted within the law.”
The current provincial minimum monthly wage for Bali is Rp. 1,5420,000 (US$134), with many companies still paying below that level.
The Governor’s comments were made on Saturday, May 3, 2014.
MetroBali.com reports that the governor would be very pleased if every household head in Bali earned Rp. 10 million each month, including those in the tourism sector. The governor said that a Balinese household with an income less than Rp. 10 million does not have sufficient money to fill the basic and educational needs of a family with children.
Continuing, Pastika said: “But the problem remains, are the companies capable of paying such high wages? Will they be bankrupted if they pay such salaries and then end up creating more unemployment.”
The governor underlined that the provincial administration is prepared to set wage levels in the tourism sector, but has concerns that a more prosperous level of remuneration would threaten hotel profitability in remote areas, such as Buleleng and Karangasem.
Exploring the topic further, the governor said high wages in the tourism sector would have the negative impact of serving as a disincentive to the younger generation to seek jobs in the agricultural sector.
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