The Influence of District Minimum Wage Gap, Length of Service, and Education Level on Worker Welfare

Ainun Mardiah; Putri Apria Ningsih; Nur Fitri Martaliah

doi:10.63922/ijebir.v5i06.6018

Ainun Mardiah Sultan Thaha Saifuddin State Islamic University of Jambi
Putri Apria Ningsih Sultan Thaha Saifuddin State Islamic University of Jambi
Nur Fitri Martaliah Sultan Thaha Saifuddin State Islamic University of Jambi

DOI: https://doi.org/10.63922/ijebir.v5i06.6018

Keywords: Education, Employment Tenure, Minimum Wage, Worker Welfare, Wage Gap

Abstract

This research is motivated by the gap between the Regency Minimum Wage and the actual wages of shop workers in Dendang District, East Tanjung Jabung Regency, which has the potential to affect worker welfare. This study aims to analyze the influence of the gap between the Regency Minimum Wage, length of service, and education level on worker welfare. The study used a quantitative approach with an associative method. The study population was shop workers in Dendang District, with a sample of 90 respondents selected using purposive sampling. Data were collected through observation and Likert-scale questionnaires, then analyzed using SEM-PLS with SmartPLS 4.0. The results show that the gap between the Regency Minimum Wage and length of service has a positive and significant effect on worker welfare, while education level has no significant effect. Education level has a positive and significant effect on length of service. In conclusion, worker welfare is more related to the suitability of wages and work experience than formal education

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