News
Wage subsidy in the time of crisis
The Government of Indonesia has taken an initiative to provide wage subsidy assistance for workers impacted by the 2019 Corona Virus Disease (COVID-19). Many countries have used wage subsidy schemes to compensate income loss of workers and encourage enterprises to maintain employment in a time of crisis.
Importantly, such scheme may be also relevant for the current discussion about the establishment of JKP. In fact, some countries put in place wage subsidy schemes as part of employment insurance schemes to prevent unemployment. In this regard, it may be a good opportunity for Indonesia to introduce such scheme not only as a temporary measure but also with a view to establish a long-term measure as part of the national social security system.
The ILO offer technical supports for the design of this programme. A set of brief slides is prepared to summarise the common feature of wage subsidies in other countries and some ideas about possible designs for Indonesia.