WAGE LEGAL SYSTEM BASED ON THE CONCEPT OF THE PANCASILA WELFARE STATE

Abstract [English]

Indonesia as a Welfare State based on Pancasila is tasked with carrying out people's prosperity, the state is allowed to interfere in the private lives of its citizens, one of which interferes in the Employment field including in the wage field, which has a variety of main problems including: Low wages for lower workers, lowest wage gap and highest, Variation in the wage component, Unclear relationship between wages and productivity, Workers' living needs, Social inequality, Work performance, and Human values and self-esteem. So, the purpose of this article is to analyze the legal system of remuneration based on theories and viewpoints of legal goals. The conclusion of this article is that the legal system of remuneration needs to be assessed based on theories of legal objectives such as ethical theory, utility theory and theorizing theory and based on legal objectives from the point of view, namely the point of view of positive-normative or dogmatic juridical law, where the objective of wage law is at emphasize the legal certainty, the point of view of legal philosophy, where the goal of wage law is emphasized in terms of justice, and the viewpoint of the sociology of law, where the purpose of wage law is emphasized on the benefit aspect. The results of the study are based on the theories and the objectives of the legal field, it is expected to be able to describe the wage legal system that can be in line with the ultimate goal of industrial relations, namely “the welfare of all parties (employers and workers)” or the wage legal system that fulfills a decent living for humanity that correlates with company productivity or profit.