Job Satisfaction

This study investigates the determinants of job satisfaction in Indonesia within the context of the 2024 Provincial Minimum Wage (UMP) debate, questioning whether wage increases alone can effectively enhance worker satisfaction. Analyzing data from the Indonesian Family Life Surveys (IFLS) of 2007 and 2014, the study finds that although 70.6% of workers report being satisfied with their jobs, notable dissatisfaction persists, particularly among younger, less-educated, and rural workers. Results indicate that beyond monetary compensation, factors such as pensions, general insurance, health insurance, and civil servant status significantly impact satisfaction. Civil servants report higher satisfaction, attributed to job stability and comprehensive benefits, even though their salaries often fall below market rates. These findings highlight the importance of a social contract that provides extensive benefits beyond salary, contrasting sharply with Indonesia’s Job Creation Law, which fails to guarantee private-sector job stability. This study emphasizes the need for policy measures that support job security and satisfaction across diverse employment sectors.