Firms prepared to pay for Idul Fitri allowance to workers in Tangerang

The Tangerang municipal Manpower Agency confirmed on Friday that as many as 2,184 firms that operate in the municipality had committed to providing Idul Fitri allowances (THR) for their workers.

“As of today, we have yet to receive notice or complaints from any firms that are not ready to pay Idul Fitri allowances to workers,” Tangerang Manpower Agency head Abduh Surahman told reporters.

According to Abduh, over the past three years he had not seen any conflicts regarding THR pay between workers and employers in the municipality.

He said there are a total of 380,000 workers currently working for the 2,184 firms and if each firm pays Rp 1 million (US$118) in THR to each worker, it would mean that the firms would collectively spend a total of Rp 384 billion for THR this year.

Referring to Manpower Ministry regulation No. 4/1999, THR must be paid to workers seven days before Idul Fitri. However, most firms in Tangerang municipality pay THR 14 days before Idul Fitri.

The THR sum each worker receives depends on their employment term at the respective firm. An employee who has worked more than a year deserves THR equal to one month’s salary.

He asserted that the agency would impose sanctions on any firm that refused to pay THR.

“Owner of firms that do not provide THR for workers can face three month jail terms as stipulated in the Manpower Ministry regulation,” he added.