Holiday bonuses to build unity: Minister

Manpower Minister Muhaimin Iskandar has asked employers to comply with their obligation to pay their employees’ holiday bonuses on time.

Muhaimin said Saturday the bonus, known as THR, was among key elements that would keep the employers and their employees intact.

“The holiday bonus must be paid a week before Idul Fitri at the latest in accordance with the regulations. From time to time companies have complied with the government ruling,” Muhaimin told Antara news agency after witnessing Pertamina president director Karen Agustiawan and the state oil and gas company’s labor union sign a cooperation agreement for 2010-2012 in Cilacap, Central Java.

The regulation stipulates that those who have worked at a company for at least a year will receive a holiday bonus equivalent to their base salary.

Muhaimin said employers might request for the government’s permit to postpone holiday allowance payment, but the manpower office would thoroughly verify the reasons for the delay.

"We have found no problems in the past few years. Hopefully there will be no employee who has his or her right to holiday bonus denied,” he said.