Fair Pay and Decent Remuneration

Universitas Islam Sultan Agung (UNISSULA) is committed to ensuring fair and decent remuneration for all staff and faculty. The university applies a formal salary and allowance system governed by the employment regulations of Yayasan Badan Wakaf Sultan Agung (YBW-SA) and by the applicable government wage regulations in Semarang City.

In 2025, UNISSULA maintained employee remuneration above the applicable local government wage benchmark. The university applies a minimum remuneration equivalent of at least IDR 21,000 per hour, which is above the equivalent hourly value of the official 2025 minimum wage for Semarang City.

This minimum remuneration is complemented by a broader package of fixed allowances, welfare benefits, and academic incentives for lecturers and other employees.

Government-Defined Local Wage Benchmark

The Government of Central Java established the official minimum wage for Semarang City for 2025 through the Governor of Central Java Decree No. 561/45 of 2024 on District/City Minimum Wages and Sectoral Minimum Wages in Central Java Province for 2025.

Under this regulation, the 2025 minimum wage for Semarang City is IDR 3,454,827 per month.

The regulation also states that employers are prohibited from paying wages below the applicable minimum wage and that the 2025 wage provisions became effective on 1 January 2025.

This government-defined wage serves as the local benchmark for UNISSULA because the university is located in Semarang City.

Equivalent Hourly Wage

UNISSULA’s employment framework defines normal working time as up to 40 hours per week.

Using the official Semarang City minimum wage:

IDR 3,454,827 × 12 months ÷ 52 weeks ÷ 40 hours

results in an equivalent local wage benchmark of approximately:

IDR 19,932 per hour

For institutional reporting purposes, UNISSULA applies a conservative minimum remuneration equivalent of:

IDR 21,000 per hour

This is above the calculated local benchmark.

The comparison can be summarized as follows:

UNISSULA’s minimum remuneration equivalent is therefore above the applicable local government wage benchmark.

Formal Employment Regulation

UNISSULA’s remuneration system is governed by the 2025 YBW-SA Employment Regulations.

In July 2025, UNISSULA formally distributed YBW-SA Decree No. 188/SK/YBW-SA/VI/2025 concerning the Compilation of YBW-SA Employment Regulations to university leaders, faculties, bureaus, units, institutions, and other organisational units for implementation.

These regulations establish the institutional framework for salaries, allowances, employment conditions, working hours, employee welfare, and other employment rights.

Protection Against Payment Below the Minimum Wage

The 2025 employment regulations contain an explicit protection against remuneration falling below the applicable minimum wage.

For employees serving a probationary period, the regulations state that a prospective employee may receive 80% of the applicable basic salary together with relevant allowances, but with the explicit condition that remuneration must:

not fall below the applicable minimum wage.

This provision is particularly important because it ensures that even employees at an early stage of employment remain protected by the minimum wage floor.

It demonstrates that the institutional remuneration framework does not permit payment below the applicable government benchmark.

Basic Salary and Fixed Allowances

UNISSULA’s remuneration system is not limited to basic salary alone.

Under the 2025 employment regulations, employee remuneration consists of basic salary and allowances, with salary payments made regularly at the end of each month.

The remuneration structure includes fixed and welfare-related components such as:

• Basic salary;
• Spouse allowance;
• Child allowance;
• Position allowance;
• Functional allowance;
• Health and employment social-security benefits; and
• Other employee welfare allowances.

Additional YBW-SA regulations further clarify that wage-related calculations include basic salary and fixed allowances provided to employees and their families.

For UNISSULA personnel, documented fixed allowance categories include food-related, spouse, child, and functional allowances.

Additional Employee Welfare Allowances

In addition to basic salary, UNISSULA provides further allowances and welfare components that strengthen the overall remuneration received by employees.

These include:

• Transportation allowance;
• Spouse allowance;
• Child allowance;
• Rice allowance;
• Meal allowance;
• Lecturer functional allowance; and
• Other employee welfare benefits.

These forms of remuneration complement the basic salary structure and support the economic welfare of both academic and non-academic employees.

The YBW-SA remuneration framework distinguishes between fixed allowances and other forms of employee welfare support, demonstrating that employee compensation is structured as a broader package rather than as basic salary alone.

Academic Incentives for Lecturers

UNISSULA also provides additional academic incentives for lecturers in recognition of their teaching, research, community engagement, and academic responsibilities.

These include incentives for:

• Research activities;
• Community service activities;
• Examining students;
• Supervising students; and
• Other academic responsibilities.

These academic incentives are additional to the university’s basic remuneration framework and are intended to recognise the wider professional responsibilities carried out by academic staff.

This approach is comparable in structure to the remuneration model used by other Indonesian universities, where basic salary is supplemented by performance-based and academic incentives for lecturers and staff. The UGM example similarly distinguishes between basic living wage provisions and additional performance or academic incentives for lecturers and staff.

Transportation and Daily Welfare Support

UNISSULA also provides transportation and food-related support as part of the broader employee welfare system.

Transportation allowances help support the daily mobility costs associated with work, while rice and meal allowances contribute to employees’ day-to-day welfare.

These benefits are provided in addition to the basic remuneration framework and further strengthen the overall compensation received by employees.

Family-Related Allowances

The university’s remuneration framework also recognises family responsibilities.

Employees may receive:

• Spouse allowance;
• Child allowance; and
• Other family-related benefits.

The YBW-SA employment regulations explicitly recognise spouse and child allowances as part of the remuneration structure.

This helps support employees not only as individuals but also in relation to their household responsibilities.

Regular Monthly Salary Payment

UNISSULA maintains a regular salary-payment mechanism.

The 2025 employment regulations specify that salaries are paid at the end of each month and that employee remuneration comprises basic salary and allowances.

Regular salary payment provides predictability and financial stability for employees.

Remuneration Structure at UNISSULA

The overall remuneration framework can be represented as:

• Basic Salary
• Fixed Allowances
• Family Allowances
• Transportation Support
• Rice and Meal Allowances
• Functional Allowances
• Research Incentives
• Community Service Incentives
• Examination Incentives
• Supervision Incentives

This demonstrates that the wage received by staff and faculty is not limited to basic salary, but consists of a broader package of remuneration and welfare support.

Living-Wage Comparison for 2025

The 2025 position can be summarized as follows:

Employee Welfare Beyond the Minimum Wage

The important feature of UNISSULA’s remuneration system is that the minimum wage serves as a minimum floor rather than the entire remuneration package.

Employees receive basic remuneration that is maintained above the applicable local wage benchmark, while additional fixed allowances, family allowances, transportation support, food-related allowances, and academic incentives further increase their total compensation.

For lecturers, additional academic remuneration may arise from research, community service, examination, and supervision activities.

This provides a more comprehensive approach to employee welfare than compliance with a minimum wage alone.

Supporting Decent Work and Economic Growth

Through its remuneration and employment framework, UNISSULA contributes to SDG 8: Decent Work and Economic Growth.

The university supports decent employment through:

• Remuneration above the applicable local wage benchmark;
• Formal employment regulations;
• Explicit minimum-wage protection;
• Regular monthly salary payment;
• Family-related allowances;
• Transportation and food-related support;
• Social-security-related benefits;
• Functional allowances for academic staff; and
• Academic incentives for research, community service, examination, and supervision activities.

These measures strengthen economic security and employee welfare across the university.