Manpower Minister Urged Employers to Reach Deal with Staff on Eid Allowances

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah has urged employers who find themselves unable to pay the Eid Al-Fitr holiday allowance or Eid allowance (THR) in full and on-time due to the pandemic to reach an agreement with employees.

The policy has been stipulated in the Manpower Minister’s letter (No.M/6/HK/04/IV/2021) regarding the allotment of the 2021 religious holiday allowance for workforces at companies. It was issued on April 12, 2021 and addressed to regional administration heads across the nation.

“We ask for cooperation from all regional administration heads to make sure that companies pay the THR to all employees, as stipulated in the regulation. For employers who cannot make THR payment, they are obliged to hold a dialogue (with their employees) and reach an agreement,” Fauziyah disclosed during an online press conference here on Monday.

The agreement needs to be made through a bipartite dialogue with good intentions and kinship, she said. Moreover, the dialogue summary has to be written and must entail the payment date, she stressed.

The letter also requires the THR payment to be made no later than one day before the religious holiday, she informed.

She added that the agreement must be made in accordance with the internal financial statement of the company and ensure transparency.

“This agreement does not suspend the company’s obligation to make the THR payment to its workers according to the regulation. Then, it has to be reported to the manpower regional administration office,” Fauziyah pointed out.

She also assured that the ministry has formed a task force for consultation service and law enforcement pertaining to the 2021 THR allotment.

Read: Govt: Workers' Right for Eid Allowance Must be Paid in Full

ANTARA