Indonesia to Implement Single Salary System for Civil Servants by 2026

Simplifying Compensation Structure

The National Civil Service Agency (BKN) is targeting the implementation of a single salary system for all civil servants (ASN) starting in 2026. This significant reform aims to consolidate various existing compensation components into a unified salary structure, simplifying the current complex remuneration system.

Coordination and Implementation

BKN Chief Zudan Arif Fakrulloh stated that the agency is actively coordinating with key stakeholders including the Ministry of Finance and the Ministry of State Apparatus Empowerment and Bureaucratic Reform (PAN-RB). The coordination is crucial to align various regulatory aspects and ensure a smooth transition to the new system.

Key Considerations

1. Regulatory Alignment: Multiple government agencies are involved in finalizing the regulations supporting the single salary system
2. Comprehensive Planning: The implementation requires meticulous preparation to ensure all aspects are properly addressed
3. Stakeholder Consensus: Final decisions will be made collectively with various relevant ministries and government agencies

Impact and Expectations

The single salary system is expected to bring greater transparency and simplicity to civil servant compensation. By consolidating various allowances and benefits into a single salary structure, the government aims to create a more efficient and transparent compensation system for ASN.