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Govt assures workers of holiday bonuses

With Idul Fitri to begin in less than a month, the Manpower Ministry has assured that workers in the formal sector will receive their holiday bonuses (THR), with the issuance of two ministerial decrees

The Jakarta Post
Jakarta
Fri, June 17, 2016 Published on Jun. 17, 2016 Published on 2016-06-17T08:59:37+07:00

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Govt assures workers of holiday bonuses

W

ith Idul Fitri to begin in less than a month, the Manpower Ministry has assured that workers in the formal sector will receive their holiday bonuses (THR), with the issuance of two ministerial decrees.

The first decree, which was issued on March 8, ensures the granting of the bonus even for those who have only worked for a month.

The decree is a major breakthrough from a previous regulation, which required at least three months of full-time work in order to get the bonus.

The second decree, issued on June 6, stipulates administrative punishment for employers who do not give bonuses to their workers.

“The requirement in the first decree was changed because we wanted it to be fair. Employees get paid after working for a month; therefore, they also have the right to receive the THR,” the ministry’s director general of industrial relations and social security, Hayani Rumondang, told the media on Wednesday.

She added that workers who had been employed for less than two months would get a proportional bonus, while those who had spent 12 months in a job would get a bonus equal to their monthly salary.

The new decree also stipulates that the bonus has to be in the form of money, while under the previous regulation, employers could give their workers staple foods or parcels.

The ministry’s remuneration director, Adriana, said the ministry had to change the form of the bonus because goods given to workers might not suit their needs.

“Employers should give the THR at least seven days before the religious holiday. They must pay it even if they claim that they do not have enough money. They have to find a way because it is their responsibility,” Adriana told The Jakarta Post over the phone on Thursday.

She added that the issuance of the second decree was expected to ensure that employers paid the THR.

Last year, the ministry recorded 50 cases of THR disputes, up from only eight in 2014. So far, the ministry has resolved 49 cases.

“If employers are late in paying the THR, they will be required to pay 5 percent of the total THR amount as a fine. The money will be given back to their employees to improve their workers’ welfare in the office. That detail should be stipulated in the collective labor agreement,” Adriana said.

She added that the second decree would be used if employers were found to have failed to pay the THR.

The second decree stipulates various administrative punishments such as warning letters, restriction of business activities, temporary suspension of production and freezing employers’ work permits.

The ministry also has assigned supervisors from employment agencies to monitor the implementation of the decrees and will establish posts in the regions to accommodate THR complaints from workers.

Indonesian Consumers Foundation (YLKI) chairman Tulus Abadi appreciated the new decrees, describing them as fair for all workers in formal sectors. (wnd)

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