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> News > USU Solidifies Fair Wage Commitment, Backing Compensation with Strong Policy and Significant Budget Increase

USU Solidifies Fair Wage Commitment, Backing Compensation with Strong Policy and Significant Budget Increase

Published At

25 November 2024

Published By

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By systematically guaranteeing total compensation well above the Regional Minimum Wage threshold defined by the provincial government, USU confirms its commitment to equitable and audited wage practices, directly contributing to SDG 8 (Decent Work and Economic Growth).

Medan, November 25, 2024 — Universitas Sumatera Utara (USU) has cemented its dedication to Decent Work by guaranteeing that the total compensation received by all its staff, including its lowest-paid employees, significantly exceeds the regional minimum wage standards. This robust financial structure positions USU’s pay scheme as a strong functional proxy for the local living wage.

Policy Foundation and Legal Mandate

USU’s commitment to fair compensation is not merely aspirational; it is formally institutionalized and legally binding, applying uniformly to both academic and non-academic personnel:

  • Basic Salaries are governed by Rector Regulations No. 11 of 2022.
  • Post-Employment Benefits are regulated by Rector Regulations No. 1 of 2022.

The university sets its minimum compensation floor well above the standard defined by the government through Governor's Decree No. 188.44/991/KPTS/2023, which sets the North Sumatra regional minimum wage standards. USU’s structure ensures their total pay consistently surpasses this defined threshold.

The Multi-Component Pay Structure

USU ensures that the total income of its lowest-paid staff members substantially exceeds the regional minimum through a comprehensive, multi-component package that goes well beyond the basic salary:

  • Basic Salary (compliant with national government regulations).
  • Competitive Remuneration (performance-based components that substantially increase the overall take-home pay).
  • Meal Allowances and other benefits.
  • Periodic Bonuses (linked to merit and length of service).

This layered approach guarantees financial stability and improves the quality of life for all employees.

Audited Practices via Personnel Management Information System.

To ensure fairness, accuracy, and accountability, the calculation and distribution of all compensation components are managed through the centralized Personnel Management Information System.

This system links payments directly to the specific Rector Regulations, ensuring that compensation is meticulously calculated based on performance and job criteria. By systematically guaranteeing total compensation well above the Regional Minimum Wage threshold defined by the provincial government, USU confirms its commitment to equitable and audited wage practices, directly contributing to SDG 8 (Decent Work and Economic Growth).

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