April 26, 2021 | Invest Indonesia

Employers Not Paying Eid Allowances Subject to Sanctions: Manpower Minister

Source from: Tempo

Original News HERE

Manpower Minister Ida Fauziyah confirmed the government has set sanctions for employers who do not pay Eid Al-Fitr holiday bonuses or Eid allowances (THR) in a specified time.

“It is a fine of 5 percent of the accumulated figure of THR,” said Ida in a virtual discussion on Monday, April 26, 2021.

She explained the government felt the need to regulate the provision of THR payments via a circular, which will then be forwarded to governors, regents, mayors, as well as employers.

In the Manpower Ministerial Circular No. M/6/HK.04/IV/2021 concerning the 2021 religious holiday allowances for workers in companies, Ida asked regional heads to ensure that employers pay the allowances based on the prevailing law or D-day minus seven of Eid al-Fitr.

Companies that are still affected by the COVID-19 pandemic and unable to pay THR in a specified time are required to open a dialogue to reach an agreement with employees. They are also obliged to make THR payments on D-day minus one of Eid al-Fitr at the latest.

Ida also asked governors, regents, and mayors to enforce the law according to their authority to provide legal certainties and deal with issues. Regional heads must also pay attention to given recommendations.

Governors are also urged to establish THR posts and report to the Manpower Ministry. To date, Ida said 34 provinces have formed the posts.

“Once again, the government has given incentives. So it is hoped that employers comply with the policy to pay the THR that will drive the economy and increase consumption,” Ida said.

Author: Muhammad Hendartyo
Translator: Dewi Elvia Muthiariny
Editor: Markus Wisnu Murti