Labor Union Laments Govt's Permit to Delay Eid Allowance Payment

TEMPO.CO, Jakarta - The Confederation of Indonesian Workers Unions (KSPI) lamented the government’s decision, especially the Manpower Ministry's, to allow companies to delay payment of Eid allowance or THR to their employees. 

The KSPI president Said Iqbal underlined that the government should not neglect the rights of labor. “We cannot accept Manpower Minister’s move,” said Said in a statement on Tuesday, April 28. 

Said argued that amid the COVID-19 pandemic, companies should be able to fully pay their workers’ allowance ahead of the Eid al-Fitr, or Lebaran, so as to maintain the people's purchasing power during the holiday.

If a company records financial losses, Said added, the management must submit a financial statement noting at least its financial reports for the last two years to prove the losses. The statement must be then examined by the government through a public accounting firm.

“So with the audit result, we can know which company is experiencing losses and which company is looking for excuses [to hold the payment],” Said remarked, adding that financial audits will provide justice for workers.

Earlier April, Manpower Minister Ida Fauziyah said that employers are obliged to fully pay Eid allowance to their workers despite the ongoing COVID-19 pandemic. However, the government permitted employers to dispense it in stages within a certain period or delay it until a set time, in accordance with the agreement between employers and workers.

FRANCISCA CHRISTY ROSANA | BISNIS