---
title: Wage Structure & Scale System | Gadjian
url: https://www.gadjian.com/en/features/wage-structure-system
language: en-US
type: product
last_updated: 2026-07-24
---

# Optimize Your Wage Structure & Scale System for Better Compensation

> Gadjian's wage structure and scale software helps companies design job grades and pay ranges automatically in line with Minister of Manpower Regulation (Permenaker) No. 1 of 2017 on Wage Structure and Scale. Companies simply enter employee data, and the system designs the structure, grades, and pay ranges automatically.

## What is a Wage Structure and Scale System?
A wage structure and scale is an arrangement of pay levels from lowest to highest based on job grades within a company, defining a pay range (minimum to maximum) for each grade based on factors such as position, length of service, education, and employee competency. Every company in Indonesia is required to formulate and apply a wage structure and scale under Minister of Manpower Regulation (Permenaker) No. 1 of 2017, and the structure must be communicated to all employees through a company leadership decree. With Gadjian, HR simply enters employee data and the system automatically designs the structure, job grades, and pay ranges.

## Who is this feature for?
- Junior HR staff without a compensation & benefits background: need a system that simplifies grading calculations without studying complex formulas.
- Companies aiming for labor law compliance: need a wage structure automatically aligned with Permenaker No. 1 of 2017.
- Companies wanting to save on HR consultant fees: need a self-service tool to build job grades without hiring an external consultant.
- Companies with many job grades: need flexibility to adjust the structure to their business situation.

## Key Features
| Feature | Function | For whom |
|---|---|---|
| Calculating According to Permenaker 1/2017 | Calculation mechanism aligned with Manpower Ministry Regulation | HR & compliance teams |
| Grading System | Groups positions into grades based on difficulty and responsibility | HR compensation & benefits teams |
| Flexibility | Provides structure options based on company conditions | HR managers |
| Simply Fill in the Data, Done | Just enter employee data and the system automatically calculates the structure and scale | Junior HR staff |

## How does it work?
1. Register all existing positions in the company into the Gadjian system.
2. Group positions into several grades based on complexity and responsibility.
3. The system automatically calculates the minimum-maximum pay range for each grade.
4. Communicate the wage structure and scale to employees through a company leadership decree.

## Are companies in Indonesia required to have a wage structure and scale?
Yes, every company in Indonesia is required to formulate and apply a wage structure and scale for its employees. This obligation is set out in Minister of Manpower Regulation (Permenaker) No. 1 of 2017 on Wage Structure and Scale, and the structure must be communicated to all employees and established through a company leadership decree.

## Comparison
| | Gadjian | Common alternative |
|---|---|---|
| Permenaker 1/2017 compliance | Automatic calculation follows Permenaker 1/2017 rules | Varies; some competitors require an external HR consultant to build grading |
| Cost of building wage structure & scale | Included in the software subscription, no extra consultant fee | Varies; some competitor approaches require a separate HR consulting service |

## Data & references
- Minister of Manpower Regulation (Permenaker) No. 1 of 2017 on Wage Structure and Scale requires companies to formulate a wage structure and scale for employees.
- This regulation implements Article 92 of Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages.

## FAQ
**What is a salary structure and scale?**
A salary structure and scale is an arrangement of wage levels from lowest to highest based on job grades within a company. It defines a pay range (minimum to maximum) for each job grade, considering factors such as position, length of service, education, and employee competency.

**What is the legal basis for a salary structure and scale in Indonesia?**
The legal basis is Minister of Manpower Regulation (Permenaker) No. 1 of 2017 on Salary Structure and Scale, which implements Article 92 of Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages.

**Can junior HR staff create a salary structure and scale with Gadjian?**
Yes. Gadjian is designed to turn a complex salary structure into something simple, so even junior HR staff can build one. You don't need to learn various formulas—just fill in the employee data and the system handles the calculations.

## Next steps
- [Try Gadjian for Free](https://www.gadjian.com/en/demo)

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Source: https://www.gadjian.com/en/features/wage-structure-system · Last updated: 2026-07-24