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Jakarta Post

Companies must pay holiday bonuses without delay, orders minister

The Jakarta Post Image
Manpower Minister Ida Fauziyah in an undated photograph.(Courtesy of Manpower Ministry/.)
Dzulfiqar Fathur Rahman
Jakarta   ●   Tue, April 13, 2021

The Manpower Ministry issued Monday a circular letter obligating employers to pay holiday bonuses (THR) without deferment this year ahead of Idul Fitri.

The letter reverses last year’s decision that allowed pandemic-hit businesses to either pay the bonus in installments or delay payments altogether. Under the new letter, companies must pay bonuses no later than a week before a religious holiday, most pressingly Idul Fitri, which is expected to fall on May 12.

Pandemic-hit businesses unable to pay within the timeframe have to prove their inability by disclosing financial statements and must negotiate new payment terms with employees but are, nevertheless, required to pay no later than a day before the religious holiday.

“THR is an obligation that employers must pay to their workers,” Manpower Minister Ida Fauziyah was quoted as saying in ...

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