A Comparison of the Wage Gap between the Public and Private Sectors in Indonesia

Authors

  • KMT Lasmiatun Universitas Muhammadiyah Semarang
  • Mulyadi AR Universitas Muhammadiyah Aceh

DOI:

https://doi.org/10.58812/wsbm.v3i02.1997

Keywords:

Salary disparities, Public sector, Private sector, Employee perceptions, Compensation fairness

Abstract

This study examines salary differences between the public and private sectors in Indonesia from the perspective of employees. Using a qualitative approach, interviews were conducted with 10 informants representing diverse industries and roles. Findings reveal significant contrasts between the sectors: public sector employees prioritize job security, stability, and comprehensive benefits, while private sector employees value higher salaries, performance-based rewards, and career growth opportunities. Despite these differences, both groups emphasize the importance of fairness and transparency in compensation systems. The study provides valuable insights for policymakers and employers to develop equitable and competitive remuneration strategies that address employees’ priorities and support organizational goals.

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Published

2025-06-30

Issue

Vol. 3 No. 02 (2025): West Science Business and Management

Section

Articles

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Copyright (c) 2025 KMT Lasmiatun, Mulyadi AR

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

A Comparison of the Wage Gap between the Public and Private Sectors in Indonesia (K. Lasmiatun & M. . AR , Trans.). (2025). West Science Business and Management, 3(02), 317-322. https://doi.org/10.58812/wsbm.v3i02.1997