Manpower Minister Bans Employers from Paying Eid Allowance in Installment

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah prohibited employers from paying the religious holiday allowances, known as THR, in installments to their workers.

“This religious holiday allowance must be paid in full and cannot be paid in installments. I ask companies to comply with this provision,” said Ida during a press conference, Tuesday, March 28.

She explained that giving THR is an obligation for every company to its workers in accordance with Government Regulation (PP) No. 36 of 2021 concerning wages and Manpower Ministerial Regulation (Permenaker) No. 6 of 2016 concerning Religious Holiday Allowance (THR) for workers.

“Providing THR is an obligation that must be carried out by employers to workers or laborers,” Ida underlined.

If the mandatory rule is violated, strict sanctions will be imposed starting from a written warning, limiting business activities, temporarily stopping part or all of the means of production, to freezing business activities.

“Sanctions related to THR violations are contained in PP 36 of 2021 concerning Wages. Of course, we all hope that this imposition of sanctions will not happen,” said Ida.

Manpower Minister Ida said that through Circular Letter No. M/2/HK.04.00/III/2023 dated March 27, 2023, employers are required to pay THR to their workers no later than D-7 Eid al-Fitr or on March 15, 2023. “THR is one month's wages,” she concluded.

ALI AKHMAD NOOR HIDAYAT

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