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“What are your salary expectations?” This question, often asked during job interviews, especially during salary negotiations, can pose a dilemma for many candidates despite being its apparent simplicity.
While it is natural for candidates to desire high salaries, companies consider various factors when determining compensation.
Understanding these factors can help you negotiate an ideal salary. Let’s explore the key elements that influence salary decisions.
Locations significantly impact salaries across Indonesia. For example, salaries in Jakarta are often higher than salaries in cities like Bandung or Yogyakarta. Local government policies also play a pivotal role in determining regional minimum wages.
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Typically, local or provincial administrations announce the provincial minimum wage (UMP) at the end of the year (November-December).
The UMP level depends on several factors such as population density, economic activity, and technology adoption. Before negotiating your salary, familiarize yourself with the UMP in your area.
Work experience greatly influences expected salaries. Candidates with more than 5 years of experience in their field generally earn higher salaries than fresh graduates.
For instance, a web developer with 1-3 years of experience might receive Rp 6 million to Rp 8 million on average, while one with 3-5 years of experience could be offered Rp 8 million to Rp 12 million.
Education levels also impact salaries. On average, employees with bachelor’s degrees earn more than high school graduates. According to Statistics Indonesia (BPS), here are the average salaries by education level:
Bachelor’s degree (S1) 4.59 million
Diploma (D3) Rp 3.68 million
Vocational high school (SMK)/High school (SMA) Rp 2.75 million
Secondary school (SMP) Rp 2.01 million
Primary school (SD) Rp 1.79 million
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A company’s scale and business field also influence expected salaries. Highly technical industries that require specialized training and education offer better salaries.
Now that you understand the factors influencing salaries, here are some tips to help you determine your expected salary.
Consider following the 50-30-20 rule. Allocate 50 percent of your salary for basic needs (boarding house or rent, utilities, insurance, and monthly expenses), 30 percent for discretionary spending (dining out or catching a movie), and save the remaining 20 percent or use it to pay off debt.
Living costs vary by location. For example, workers in Jakarta typically need higher salaries than those in Pontianak.
Consider your dependents when negotiating your salary. Single individuals might focus on saving or entertainment, while those with families need to ensure their salary can support their dependents.
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Factor in commuting expenses, including parking, vehicle maintenance, public transportation, and fuel costs.
Consider additional benefits and compensation offered by the company. For example, a position with comprehensive health insurance and pension funds might be more valuable than one with a higher salary but no benefits.
Especially for those with dependents, these benefits and compensation are more important than just focusing on high salaries.
Now that you’re familiar with the key factors and tips, you’re better equipped to negotiate for your ideal salary. When job hunting, look beyond just the salary. Ensure the company has a positive work culture and clear career paths. Choose a reputable and credible company in its field, such as PT Serasi Autoraya (SERA).
Founded on March 22, 1990, SERA has become a leader in Indonesia’s transportation and logistics industry. This Astra Group company regularly welcomes new members to fill various positions.
SERA continues to provide opportunities for individuals qualified for positions at the company and its subsidiaries.