Gov’t Calls On Employers to Pay Holiday Allowance in Cash

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 9 April 2022
Category: News
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Minister of Manpower Ida Fauziyah, Minister of Industry Agus Gumiwang Kartasasmita, Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono, and Minister of Foreign Affairs Retno Marsudi talked before attending a Plenary Cabinet Meeting, Tuesday (04/05), at the State Palace, Jakarta. (Photo: Agung/PR)

Minister of Manpower Ida Fauziyah has ordered employers to provide the 2022 Holiday Allowance (THR) to their workers in cash.

The Minister made the statement when launching the 2022 Holiday Allowance Command Post through Circular Number M/1/HK.04/IV/2022 on April 6, 2022 on the Implementation of the 2022 Religious Holiday Allowance Provision for Workers at Companies.

“Holiday allowance is a worker’s right and an employer’s obligation. This year, as the economy has improved, we have returned the holiday allowance policy to the original rule, which is one month’s salary for those who have been working for at least 12 months. For those who have been worked less than 12 months, it will be calculated proportionally without instalment but cash,” Ida said as quoted from the official website of Ministry of Manpower, Saturday (04/09).

The Minister also underscored that the allowance is not only the right of permanent workers but also the right of other workers.

“Contract workers, outsourced workers, temporary workers, daily workers in plantations, drivers and even domestic workers are entitled to the holiday allowance. So do not narrow the scope of the recipients,” she said.

Ida went on to say that the Government has established holiday allowance command post to handle complaints and consultations, both from workers and employers.

She asked each party to make the most of this post.

“If you want to ask any questions regarding the holiday allowance, we are ready to serve,” she added.

On that occasion, the Minister also specifically asked companies with a positive growth and good profits to provide allowance of more than one month’s salary for their workers.

“For companies that can afford it, [I advise them to] give more than a month’s salary, be it in the form of money or basic necessities so that the workers’ families will be able to break their fast and celebrate Eid with better dishes,” she said.

Ida also urged employers to join hands to boost the purchasing power of workers/labors.

“Let’s join hands with the Government to increase the purchasing power of the workers,” she remarked. (PR of Ministry of Manpower/UN) (EST/HD/EP)

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