Manpower Minister: Employers Obliged to Pay Full Eid Allowance D-7

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziah required companies to pay the religious allowance known as THR or Eid allowance at least seven days or a week before Eid al-Fitr 2022, which will fall in early May.

“THR is an obligation that must be fulfilled by the company. Religious THR is non-wage income that must be paid,” said Ida at a press conference, Friday, April 8.

Ida recalled that the government allowed companies to relax THR payments in 2020-2021 in the midst of the lingering COVID-19 pandemic. “This year, THR is expected to be paid in full according to the regulation,” she underlined.

According to him, the success of COVID-19 handling and vaccination showed the recovery of community activities that have returned to normal. Thus, companies should fulfill their obligations.

The Manpower Ministry has also prepared sanctions for companies violating the policy on Eid allowance. The sanctions are regulated in PP No. 36/2021.

“There are administrative sanctions in the form of a written warning, limitation of business activities, temporary suspension of some or all production, and stoppage of business activities," said the Manpower Ministry’s Director-General of Manpower Inspection and Occupational Health and Safety Haiyani Rumondang.

Read: Joint Decree on 2022 Eid al-Fitr Collective Leave Days Released

MUTIA YUANTISYA