the Sakernas 2004 survey, teachers reported to be working approximately 34 hours per week, while other paid workers with similar levels of education reported to be working 43–46 hours per week. Moreover, teachers have more holidays per year than other paid workers.

On the other hand, compared with other civil servants, teacher hourly earnings remain ~20 percent less on average, implying that civil servants are either working less than teachers, or are paid more per hour. Compared to their civil servant colleagues with similar levels of education, primary teachers earn approximately 13 percent less and non-primary teachers earn as much as 23 percent less per hour.

The Labor Force Survey further reveals significant regional differences in teachers’ earnings. For example, teachers in East Java earn 23 percent less per month than teachers in West Java. However, other workers in East Java earn 16.5 percent less than workers in West Java do. Other places in which teachers earn substantially less than West Java are the large area of Central Java (14.7 percent), Nusa Tenggara Barat (NTB) (14.1 percent), and Banten (10.9 percent). Banten, Riau, and Bangka Belitung are provinces in which teachers earn substantially less than other workers. The same places have large differentials in terms of hourly earnings as well.

Table 16 Ministry of education’s report of Qualified Teachers per Level of Education _<u>(Percentage)</u>_

|**Education Level**|**1999/2000**|**2000/2001**|**2001/2002**|**2002/2003**|**2003/2004**|
|---|---|---|---|---|---|
|TK/Kindergarten|9.7|9.8|9.4|9.4|29.9|
|SD/Primary School|421|46.1|49.5|50.7|55.7|
|SLTP/Junior SS|60.0|64.0|64.0|64.1|72.5|
|SM/Senior SS|61.4|62.5|63.0|630|60.9|
|PT/Higher Education|35.5|41.6|43.7|48.5|47.6|

_Source:_ MoNE 2004/2005 teacher data.

Low remuneration is partly compensated by the additional allowances that teachers receive. However, just as do salaries, allowances paid to teachers tend to vary greatly, depending on wideranging local circumstances. There are various types of allowances, including district and school allowances. Field data from another World Bank study on teacher employment and deployment showed that 36 percent of primary teachers and 52 percent of junior secondary teachers received district allowances. This study also showed that 14 percent of primary teachers and 45 percent of junior secondary teachers received a school-level incentive. Inequities in remuneration turned out to be most apparent when districts were not in a position to pay allowances, compared to districts that were better off. Anecdotal evidence suggests that the generally low level of remuneration affects teacher motivation, attendance, and performance, and that it is not uncommon for teachers to have to take a second job to “make ends meet”.<sup>34</sup> To ensure that teachers have an incentive to attain the proper qualifications, their wages need to correspond with these qualifications. The trends in earnings show that more highly educated teachers earn relatively less than less educated teachers when compared to salaries of workers with equivalent qualifications. Hence, to ensure that the majority of teachers without proper qualifications will become certified in the future, their current salaries should be increased. Higher current salaries are particularly urgent since educational quality is likely to be negatively affected by a large proportion of teachers being inadequately qualified. As recent data from the MoNE indicates, only 55 percent of primary school teachers and only approximately 73 percent of junior secondary and 61 percent senior secondary level teachers meet the appropriate qualifications.

A new Teacher Law, introduced December 2005, introduces an additional certification requirement that will significantly increase the level of routine spending on teacher wages (salary and incentives) over the next 10 years. The law stipulates that all teachers must be certified within 34 World Bank (2006b).

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