S. Sumatra allots Rp 6.3b for bonus

PALEMBANG, S. Sumatra: The South Sumatra provincial administration has allocated about Rp 6.3 billion (US$700,000) from the 2008 provincial budget for this year's Idul Fitri holiday bonus (known as THR).

Provincial secretary Musyrif Suwardi said Saturday that all 8,404 provincial administration employees regardless of their grade would get Rp 750,000 each, higher than last year's bonus of Rp 500,000.

Those in the higher III and IV grades will get a 15 percent income tax cut while those in the lower I and II grades will get the bonus in full.

Musyrif said the bonus was not a THR, but an incentive to help administration employees make ends meet ahead of Idul Fitri.

Workers in the private sector are entitled to a THR worth about one month's salary ahead of holidays (usually Idul Fitri or Christmas), but civil servants do not have this privilege.

The provincial finance bureau head, Sayuti AF, said the amount was increased to account for the inflation rate and increased cost of living.

Meanwhile, South Sumatra Acting Governor Mahyuddin NS banned all high-ranking employees from receiving gift parcels to prevent any collusion occurring under the cover of the holiday season.

Anyone who has received any gifts has been told to return them.

The public are also urged not to give any gifts of any kind to high-ranking officials. -- JP